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ERA-ARD, SROs, FARA Africa

MAPPING FOOD AND BIOENERGY


IN AFRICA

A report Prepared for FARA

May 2010

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ERA-ARD, SROs, FARA Africa

A report produced on behalf of FARA

Main contributors:
Author and editor
Dr Rocio A Diaz-Chavez – Imperial College

CASE STUDIES
Tanzania Stephen Mutimba, CAMCO
Kenya CAMCO
Mozambique CAMCO
Zambia Dr Helen Watson
Mali Dr Sebastian Rodriguez-Sanchez
Senegal Dr Massaër Nguer

Acknowledgements
Ghana case Hookyung Kim, Imperial College
Reviewer: Dr Jeremy Woods – Imperial College London
Myra Wopereis-Pura and Adewale Adekunle - FARA

Citation:
Diaz-Chavez R, Mutimba S, Watson H, Rodriguez-Sanchez S and Nguer M. 2010. Mapping Food and
Bioenergy in Africa. A report prepared on behalf of FARA. Forum for Agricultural Research in Africa.
Ghana.

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ERA-ARD, SROs, FARA Africa

REPORT CONTENT

1. Introduction and presentation of the report. ....................................................................... 8


2. African bioenergy development ....................................................................................... 11
3. Policy mechanisms to encourage the use of biofuels. ..................................................... 12
4. Land use ......................................................................................................................... 15
5. Existing and potential Biofuel Crops in Southern Africa ................................................... 17
5.1 Food and bioenergy crops in Africa. .......................................................................... 22
6. SENEGAL CASE STUDY ............................................................................................... 24
6.1 Country’s characteristic: ............................................................................................ 24
6.2 Population size and characteristics ............................................................................ 25
6.3 Gross Domestic Product, Human development Index: ............................................... 25
6.4 Main food crops: ........................................................................................................ 25
6.5 Predominant land characteristics: .............................................................................. 27
6.6 Characteristics of livelihoods: .................................................................................... 27
6.7 Policies in place and link with the bioenergy sector. .................................................. 27
6.8 Biofuel industries/programmes development: ............................................................ 29
6.9 Crops used for Biofuel: .............................................................................................. 30
6.10 Implications for land tenure, water and employment: ............................................... 30
6.11 Mapping of policy and institutions ............................................................................ 31
6.12 Links in biofuels development in Senegal ................................................................ 32
6.13 Summary of biofuels activities implications in Senegal ............................................ 34
6.14 Conclusions ............................................................................................................. 34
7. MALI CASE STUDY ........................................................................................................ 36
7.1 Country’s characteristics. ........................................................................................... 36
7.2 Population Size and Characteristics .......................................................................... 36
7.3 Gross Domestic Product and Human Development Index ......................................... 37
7.4 Main food crops ......................................................................................................... 37
7.5 Predominant land characteristics ............................................................................... 38
7.6 Characteristics of livelihoods ..................................................................................... 38
7.7 Policies in place and link with the bioenergy sector ................................................... 39
7.8 Biofuels industry/programmes development ............................................................. 40
7.9 Crops used for biofuels .............................................................................................. 40
7.10 Implications of conversion of Biofuel raw material .................................................... 42
7.11 Mapping of the institutions: ...................................................................................... 44
7.12 Links in biofuels development in Mali ....................................................................... 52
7.13 Summary of biofuels activities implications in Mali ................................................... 54
7.14 Conclusion............................................................................................................... 54
8. TANZANIA CASE STUDY............................................................................................... 56
8.1 Country’s Characteristics ........................................................................................... 56
8.2 Population Size and Characteristics .......................................................................... 57
8.3 Gross Domestic Product, Human Development Index and Poverty Levels ................ 58
8.4 Main food crops ......................................................................................................... 59
8.5 Main Agricultural and Food Crops Imports/Exports .................................................... 59
8.6 Characteristics of Livelihoods in Farming Systems .................................................... 59
8.7 Policies in Place and Link with the Bioenergy Sector ................................................. 60
8.8 Biofuels Industry/Programmes Development ............................................................. 61

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8.9 Crops Used for Biofuels: ............................................................................................ 62


8.10 Implications of Conversion of Raw Materials to Biofuels .......................................... 63
8.11 Mapping of Policy and Institutions and Links with Bioenergy ................................... 63
8.12 Links in Biofuels Development in Tanzania .............................................................. 65
8.13 Summary of the biofuels activities in Tanzania ........................................................ 66
8.14 Conclusions ............................................................................................................. 66
9. KENYA CASE STUDY .................................................................................................... 68
9.1 Country’s characteristics............................................................................................ 68
9.2 Population Size and Characteristics .......................................................................... 71
9.3 Gross Domestic Product, Human Development Index and Poverty Levels ................ 71
9.4 Main food crops ......................................................................................................... 72
9.5 Main Agricultural and Food Crops Imports/Exports .................................................... 72
9.6 Characteristics of Livelihoods in Farming Systems .................................................... 73
9.7 Policies in Place and Link with the Bioenergy Sector ................................................. 73
9.8 Biodiesel Programmes............................................................................................... 76
9.9 Crops Used for Biofuels ............................................................................................. 77
9.10 Implications of Conversion of Biofuels Raw Material ................................................ 79
9.11Mapping of Policy and Institutions and Links with Bioenergy .................................... 80
9.12 Links in Biofuels Development in Tanzania .............................................................. 83
9.13 Summary of the biofuels activities implications in Kenya ......................................... 85
9.14 Conclusions ............................................................................................................. 85
10. ZAMBIA CASE STUDY ................................................................................................. 87
10.1. Country’s Characteristics ........................................................................................ 87
10.2. Population characteristics ....................................................................................... 90
10.3. Gross Domestic Product, Human Development Index and Poverty Levels ............. 90
10.4. Food security .......................................................................................................... 92
10.5. Main Crops: Production, Imports/Exports................................................................ 93
10.6 Characteristics of Livelihoods .................................................................................. 94
10.7 Policies Linked to Bioenergy Sector......................................................................... 95
10.8 Biofuels Development Status ................................................................................... 95
10.9 Crops Used for Biofuels ........................................................................................... 96
10.10 Implications of Biofuels Production on Water and Employment.............................. 97
10.11 Stakeholder Roles and Views ................................................................................ 97
10.12 Links in biofuels development in Zambia ............................................................... 98
10.13 Summary of biofuels activities implications in Zambia............................................ 99
10.14 Conclusions ........................................................................................................... 99
11. MOZAMBIQUE CASE STUDY .................................................................................... 100
11.1Location .................................................................................................................. 100
11.2 Population Size and Characteristics ...................................................................... 101
11.3 Gross domestic product ......................................................................................... 101
10.4 Main food crops ..................................................................................................... 102
11.5 Main Agricultural food products imports and exports ............................................. 102
11.6 Characteristics of livelihoods ................................................................................. 103
11.7 Policies in place ..................................................................................................... 103
11.8 Biofuels industry programmes development .......................................................... 104
11.9 Crops used for biofuels .......................................................................................... 105
11.10 Expected end use of biofuels ............................................................................... 105
11.11 Mapping of policies and institutions ..................................................................... 105

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11.12 Links in Biofuels Development in Mozambique .................................................... 106


11.13 Summary Mozambique ........................................................................................ 107
11.14 Conclusions ......................................................................................................... 107
12. GENERAL CONCLUSIONS ........................................................................................ 109
13. GENERAL REFERENCES .......................................................................................... 111
13.1 References by Case study ..................................................................................... 112
14. ANNEXES ................................................................................................................... 118
Annex 1. ........................................................................................................................ 118
Annex 2. Case study Ghana .......................................................................................... 121

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ERA-ARD, SROs, FARA Africa

LIST OF TABLES

Page
Table 1. Projected Final Biomass Consumption in Relation to Total 12
Energy Use, 2000 and 2020 (UNIDO, 2008).
Table 2. Total Final Energy Supply Including Biomass Energy in Africa 12
(UNIDO, 2008).
Table 3. Examples of African Countries policy, laws and programmes 14
related to biofuels
Table 4. Land availability in Malawi, Mozambique and Zambia (Watson, 17
2008).
Table 5. Cassava production and use in 1993, and projected to 2020 18
(Scott et al. 2000) in Tonukari, 2008).

Case studies

Table 6.1. Main crops in Senegal by hectare and tons 26


Table 6.2 Top 10 main agricultural and food crops imports 26
Table 6.3 Top 10 export of main agricultural and food crops 26
Table 7.1 Agricultural production in Mali (Thousands of Tons) 37
Table 8.1 Population trend in Tanzania 58
Table 8.2 Major agricultural crops in Tanzania. 59
Table 9.1 Viable Biofuel crops in Kenya 78
Table 9.2 Biofuel feedstocks prices in 2008 in Kenya 79
Table 10.1 Zambia’s Economic Indicators (adapted from DFAT, 2009) 91
Table 10.2 typical crops grown in Zambia’s three agro-ecological zones l 93
Table 10.3 2004 production status of potential biofuels feedstocks in 96
Zambia
Table 11.1 Mozambique’s agriculture statistics 103

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LIST OF FIGURES

Page
Figure 1. Map of Africa and selected countries. 8
Figure 2. Diagram for Mapping of policies and institutions. 10
Figure 3. Land area, arable land area and forest area in different 11
countries in Africa (Source: FAOSTAT, 2008).
Figure 4. Land covers unsuitable for bioenergy crops in Africa 16
Fig. 5. Areas that are unsuitable and /or unavailable for bioenergy crops 16
in sub-Sahara’s arid and semi-arid regions
Figure 6. Arable land area evolution in selected African countries 1970- 16
2005
Figure 7. Forest area evolution in selected African countries 1970-2005 16
Figure 8. Production, yield and area harvested of sorghum in the four 19
case study countries of Botswana, Mozambique, South Africa and
Zimbabwe (source: FAOSTAT, 2004).
Figure 9. Soybean area harvested for Southern African countries since 20
1970.
Figure 10. Sunflower area harvested for Southern African countries since 21
1970.
Figure 11: Map of Tanzania showing location relative to its neighbours 20

Case studies

Figure 6.1 Map of Senegal 24


Figure 7.1 Map of Mali 36
Figure 7.2 Evolution of selected agricultural products in Mali 37
Figure 8.1 Map of Tanzania 56
Figure 8.2 Tanzania’s GDP 58
Figure 9.1: Map of Kenya 68
Figure 9.2 Agro-Climatic Zones of Kenya 69
Figure 9.3: GDP Composition by Sector in Kenya 72
Figure 10.1: Map of Zambia 87
Figure 10.2: Relative importance of Zambia’s economic activities in 1996 88
Figure 10.3 Map showing Zambia’s three major agro-ecological zones 89
Figure 10.4: Production trends in food staples in Zambia 92
Figure 11.1: Map of Mozambique 100

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ERA-ARD, SROs, FARA Africa

1. Introduction and presentation of the report.


Bioenergy interest has gained much attention in the last years due to the positive issues that
it can bring specially for developing countries but at the same time because of the many
concerns on risks and trade-offs that could generate. FARA considers that the production of
bioenergy crops will need to take into account a) a broader understanding of the extent of
the issues and concerns surrounding food to bioenergy conversion and b) the accompanying
policy/institutional dimensions as input to the development of an appropriate and truly
responsive food and bioenergy programs in developing economies

This report focuses on assessing Africa’s ability to fulfil the following objectives:
a. Generate regional evidence on the frequency of the conversion of cash food crops to
biofuels.
b. Determine perceived issues and concerns of this conversion by sector (regional,
national, household).
c. Establish early indication of the impact (trends, patterns) to anticipate future
scenarios.
d. Undertake policy and institutional mapping as well as analysis to better understand
the policy and institutional dimensions of the food and bioenergy interphase.

Report Approach:
According to the development of, and interest in bioenergy production in Africa, this report
focuses on a selection of countries in order to cover different regions from Africa:
• West Africa: Senegal and Mali
• East Africa: Kenya and Tanzania
• Southern Africa: Mozambique and Zambia

Figure 1 shows the countries assessed in the report. Mapping of policies and institutions in
Ghana is included as a reference. The selected countries are those where a core sub-set of
data is available and where relevant biofuel production is taking place. Other countries such
as South Africa also have biofuel production, but considering the GDPs of the continent,
those with more risk for impacts were selected.

Figure 1. Map of Africa and selected countries. Source: http://www.africamap.com/

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ERA-ARD, SROs, FARA Africa

According to ERA-ARD1, the following are the expected outputs of the project:
1. Report on the impact of food-to-biofuel conversion inclusive of the;
a. Detailed methodology, data summary and analysis
b. Extent of cash food crops to biofuel conversion
c. Issues and concerns of conversion phenomena
d. Early indications of the impact of conversion on smallholder farmers’ food
security and livelihood sustainability.

For each country the following points were included according to availability of data.
1. Summary characteristics:
o location
o geographical characteristics (including weather variables and fluctuations in
recent past)
o environmental characteristics (tendencies for desertification, flood and other
natural disasters)
2. Population size and characteristics (gender)
3. Gross Domestic Product, Human Development Index and
4. Food sufficiency index including net importation / exportation of food items.
5. Main food crops (land, yields)
6. Predominant soil characteristics ( soil type, primary rock, production potentials and
resilient indicators)
7. Main agricultural and food crops imports/exports
8. Livelihoods characteristics : average income for farmers; type of property in farms
(private, communal, tribal);
9. Policies: agriculture, energy, environment, land use, other. Link with the bioenergy
sector
10. Biofuels industry/programmes development : main crops (potential crops), land used,
projects associated, technical conversion practices
11. Crops used for biofuels:
• Type and conversion technology (if known)
• Market (raw material)
• End use (community energy generation)
• Price paid to the farmer (in assets or cash) or if farmer is employed average
salary
• Implications for land tenure, water and employment (these may be the most
relevant)
12. If conversion of raw material is taking place mark the implications for:
• Water use
• Employment
13. For the mapping of policy and institutions:
• First hand players (e.g. if an investor wants to start a project which
institution needs to approached first)
• National Ministries/Secretariats involved in the bioenergy
planning/applications
• Directions involved in the bioenergy planning/applications
• Regional and Local authorities involved in bioenergy plans, programmes,
projects
• NGOS involved
• Other stakeholders identified.

1
ERA-ARD is an FP6 Project of the European Commission’s ERA-NET Scheme. The Agricultural Research for Development
(ARD) and Dimension of the European Research Area (ERA) information can be found in http://www.era-ard.org/.

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ERA-ARD, SROs, FARA Africa

The report on institutions follows a top-bottom approach in order to map institutions involved
(or not involved) in biofuel development. The focus considered was based on government
(particularly ministries of energy and agriculture), private sector, NGOs, and CBOs.
If available data for case studies is possible to gather, it will be integrated for the better
understanding of the development of the industry and relative impacts on food production or
security.

The methodology for the mapping of policy and institutions firstly identifies the stakeholders
for bioenergy crops and agriculture at national level. Then, stakeholders at the production
level including NGOs, farmers, other civil organisations and the industry sector (including
also farmers with different forms of participation (e.g. outgrowers).

We considered a four-way assessment matrix including stakeholders from the local


government, the national government, NGOs (including other civil organisations) and
industry. These last two may include also farmers but at different levels of organisation.
The links between these different bodies and stakeholders are expressed with the lines as
direct, indirect or needed and the closer these lines are the closer the relationship between
the stakeholders is or should be.

Regional/Local
National authorities, authorities,
regulations regulations

Stakeholders Stakeholders Key:


productive level Industry level, Local Direct links (--------)
small scale producers, including Indirect links (-.-.-.-.)
regulations, NGOs, farmers Needed links (..........)
including NGOs, hired
farmers, outgrowers

Figure 2. Diagram for Mapping of policies and institutions.

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ERA-ARD, SROs, FARA Africa

2. African bioenergy development

Africa’s biomass energy resources vary geographically and are not uniformly distributed
(Karekezi, et al. 2008). Biomass energy use depends on a number of issues including
geographical location, land use patterns, preferences, cultural and social factors. Income
distribution patterns also contribute to variations in biomass energy use, with poorer African
countries relying on traditional forms of biomass, and wealthier African countries using more
modern biomass energy technologies (Karekezi et al, 2008). Figure 3 shows comparative
areas in different countries in Africa in 2005, where forest area and arable land extension is
compared to overall land area data.

Comparative areas in different African Countries in 2007

160000

140000

120000

100000 Forest area


1000 ha

Arable land
80000
Land area
60000

40000

20000

0
i

a
so

ia
l
i

al
a

a
a

ga
aw

qu

bi
ny

an
ric
an

M
Fa

m
ne
bi
al
Ke

Af

nz
w

Za
M

am
a

Se
ts

Ta
h
in
Bo

ut
oz
rk

So
Bu

Country

Figure 3. Land area, arable land area and forest area in different countries in Africa (Source:
FAOSTAT, 2010).

The low per capita national incomes as well as the slow growth in conventional energy use,
influences the heavy reliance on biomass energy in Africa which is considered unlikely to
change in the near future. Estimates indicate that by 2020, traditional biomass energy use is
expected to increase roughly at the same rate as population growth rates (IEA, 2003),
resulting in modest changes in the share of biomass in total final energy supply (Table 1).
On the contrary, the share of biomass in total final energy supply in developing countries is
expected to decrease in the same period. According to the IEA (in UNIDO, 2008), the
absolute number of people relying on biomass energy in Africa is also expected to increase
between the year 2000 and 2030 - from 583 million to 823 million, an increase of about 27%
(Table 2). However, the actual quantity of energy provided from biomass is expected to
increase in all cases

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ERA-ARD, SROs, FARA Africa

Table 1. Projected Final Biomass Consumption in Relation to Total Energy Use, 2000 and
2020 (UNIDO, 2008).
Country/ 2000 2020
Region
Biomass Conventio- Total Share of Biomass Conventio- Total Share
Mtoe nal Energy Mtoe biomass Mtoe nal Energy Mtoe of
Mtoe (%) Mtoe bioma
ss (%)
China 214.48 943.4 1,157.9 18.50 224 1,524 1,748 13.00
Asia 343.20 467.74 810.94 42.30 394 1336 1730 22.80
Latin 69.34 284.96 354.30 19.570 81 706 787 10.00
America
Africa 221.10 1,57.37 378.47 58.40 371 260 631 59.00
Total non 859.65 2,417.86 3,277.5 26.23 1,097 5,494 6,591 17.00
OECD 1
OECD 126.17 3,551.32 3,677.4 3.40 96 3,872 3,968 2.00
countries 9
World 985.2 5,969.18 6,955 14.20 1,193 9,365 10,558 11.00

Table 2. Total Final Energy Supply Including Biomass Energy in Africa (UNIDO, 2008).
2020 Annual growth Rate (%)
2002-2020
Biomass (Mtoe) Share of biomass in Biomass
total supply (%)
Africa 367 43 1.9
Total developing 1,127 18 1.1
countries
World 1,428 10 1.4
Source: IEA, 2003 in UNIDO (2008).

The production of biofuels (bioethanol and biodiesel) in Africa is likely to increase, in order to
meet local demand and also external demand for biofuels in advanced economies in the EU
and the Far East (Lula Da Silva, 2007 in Karekezi et al, 2008). Nevertheless, it is necessary
to apply sensitive and equitable management as large-scale modern biomass energy
development can lead to further marginalisation of the rural poor. However, the growth and
development of modern technologies could provide better incomes particularly for
smallholders. Mauritius provides a model example of where a share of the benefits from
large-scale co-generation plants that flow to low-income farmers have increased over time
through direct policy interventions and an innovative revenue sharing mechanism
(Deepchand, 2002; Karekezi et al, 2002 in Karekezi, 2008).

3. Policy mechanisms to encourage the use of biofuels.

Policy and regulatory support is necessary for the successful implementation of improved
and modern bioenergy projects as has been recommended by some international initiatives
such as the Global Network on Energy for Sustainable Development (GNESD2). There are a
number of international, national and regional initiatives in Africa regarding policies and
plans. For instance, the 2007 Addis Abba Declaration that emanated from the First High
Level meeting of African bioenergy stakeholders, committed the continent to sustainable
bioenergy development. The Seminar was organised by The African Union Commission
along with the United Nations Industrial Development Organisation (UNIDO) and the
Brazilian government. The political declaration put out will, among other things, facilitate:

2
http://www.gnesd.org/

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ERA-ARD, SROs, FARA Africa

a) the development of enabling policy and regulatory frameworks for biofuels development in
Africa
b) the formulation of guiding principles on biofuels to enhance Africa’s competitiveness while
minimizing the risks of biofuels development for small-scale producers
c) the encouragement of the engagement of development partners to enable North- South
and South-South cooperation in biofuels development (Jumbe and Msiska, 2007).

The meeting also called for the engagement of public financing institutions to support
biofuels projects and proposed the establishment of a forum to promote access to biofuels
information and knowledge (IISD/UNIDO, 2007).

Some examples of current legislation or programmes either directly related to biofuels


production or related to issues regarding its production are presented in Table 3.
Furthermore, some other initiatives are present in the continent, such as the South African
Biofuel Association, the Biofuels Association of Zambia, the Programme for Basic Energy
and Conservation (ProBEC) which is a Southern African Development Community (SADC)
project, implemented by the German Development Co-operation (GTZ).

In contrast to the development of bioenergy policies in other regions of the world, Africa does
not have a comprehensive regional policy on biofuels to regulate the growing industry. This
lack of a regional policy and strategy has led to underinvestment into biofuels research and
development in Africa. The regional economic communities in Africa such as ECOWAS,
SADC, AU/NEPD and EAC are playing and must play an important role in supporting the
development of the biofuels industry in Africa. A number of international aid organisations
are collaborating with different countries in Africa on the generation of the policies (GTZ in
Mozambique, SIDA (Swedish Development Agency) in Tanzania, CIRAD - Centre de
Coopération Internationale en Recherche Agronomique pour le Dévelopment- in Burkina
Faso) (see Annex 1).

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ERA-ARD, SROs, FARA Africa

Table 3. Examples of national African policies, laws and programmes related to biofuels.
Country Policy Documents Strategies on Biofuels Implementation
Tanzania • Forest policy (1998) • To ensure sustainable supply of forest products and
services by maintaining sufficient forest area under
effective management
• Energy policy of (2003) • Promote efficient biomass conversion and end-use
technologies; reduce rate of deforestation and land
degradation
• Environmental policy of • Investment in Biomass development
(1997)
• Land policy of (1997). • Tanzania general underlying right to land, but clearly
recognizing and clarifying customary and other use
rights to land.
• Agriculture policy (1997). • To promote sustainable food security, income
generation, employment growth, and export
• National Biofuels Task • To facilitate the ongoing and potential biofuels
Force (2006) initiative; to conduct a Policy and regulatory
Environmental scan; to develop guidelines for biofuels
development.
• The Land Act (199) and the
Village Act (1999) • Land in Tanzania to be “ Public land” and are held by
the state for public purposes.

South Africa • White Paper on • To guarantee access to safe, reliable and affordable energy;
Energy Policy to liberalise the energy sector and to introduce greater levels
(1998) of competition in electricity markets.
• Target for energy efficiency improvement of 12% by 2014
• Draft Energy
Efficiency
Strategy (Dept of • Target of 10.000 GWh of renewable energy contribution to
Minerals and final energy consumption by 2013. The renewable energy is
Energy) to be utilised for electricity generation (4% of projected
• White Paper on electricity demand), heat and biofuel production.
Renewable • Addresses policy, regulations and incentives for biofuel
Energy (2003) industry. It proposes a 4.5 percent use of biofuels in liquid
road transport fuels (gasoline and diesel) by 2013.

• Draft Biofuel • Proposes a maximum capital subsidy of 16.7 SA¢/l provided


Strategy has been for bio-ethanol plants and 27.3 SA¢/l for biodiesel
released and • Agriculture programmes to support small scale farmers and
approved by DME emerging farmers for better targeted biofuel production.
in Dec 2006 • Originally created for promoting synthetic fuel production can
• Renewable Energy be extended to the promotion of biofuel
Subsidy Scheme
(2006/07)
• Department of
Agriculture

• Central Energy
Fund (CEF)
Burkina Faso • National Energy • Not regulated
Sector
• To observe the interdependence between environment and
• Law socio-economic development; to ratify international
N°005/97/ADP agreements concerning environment conservation; to protect
from January the future generations from environmental degradation.
1997 on • For the regulation of wood fuel trade
environmental
issues • To develop the energy administration (organisation capacity
and policy formulation); to enhance efficient energy supply
• National Strategy options (electricity, hydrocarbons, woodfuel, renewable
under energies); to provide socio- economic development and to
development alleviate poverty.
• Energy and
poverty alleviation

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ERA-ARD, SROs, FARA Africa

policies (2000)
Mozambique • Urban Programme All programmes within PROBEC
– Maputo, since
2006
• Rural Programme
– Manica, since
2004 and Sofala,
since 2007
• Biofuel • To develop national sustainable criteria for biofuel production.
Component –
since mid 2007
National Biofuel Task
Force of Mozambique
Zambia • National Energy • No biofuels inclusion
Policy (NEP1994)
• Reviewed in 2004 • Government should ensure that it makes available land for
biofuels production in a transparent form
• Allocation of land for growing of energy crops should not
compromise food security and priority is given to Zambians
• There should be no sale of land.

• Biofuels Act • Under development to stand alone

Source: COMPETE country reports on biofuels policy (2007)

In terms of policies and regulations, one of the issues that deserves special attention are the
land use tenure frameworks in some African countries. Land is often considered to be a
national asset and can only be leased. Moreover, the right of occupancy can also be
“revoked” if necessary (e.g. in Tanzania). In the case of Zambia, the National Energy Policy
stipulates that there should not be sale of land involved in any development agreements
entered into with the Minister of Energy. This enforces to keep the land resource rights in the
country.

4. Land use

Using GIS (Geographical Information System) coupled to relevant databases, the


COMPETE project - Competence Platform on Energy Crop and Agroforestry Systems for
Arid and Semi-arid Ecosystems - Africa (2007) , assessed the available land resource base
(arid and semiarid) for bioenergy including biofuels in Africa. As a precaution against
detrimental impacts on biodiversity, all categories of protected areas, closed canopy forests
and wetlands were designated as unavailable for bioenergy crop production and filtered out
from the regions shown in the base map (Figure 4; Watson, 2008). Watson concluded that
the land area remaining as available and/or suitable for bioenergy crop production are:
closed or sparse grassland, open grassland with sparse shrubs, open deciduous shrubland,
deciduous shrubland with sparse trees, deciduous woodland, mosaic forest/cropland and
mosaic forest/savanna (Figure 5). Grasslands and woodlands particularly in sub Sahara’s
semi arid and arid regions generally have a very high biodiversity and play a very significant
role in environmental services and rural livelihoods (Watson, 2008).

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ERA-ARD, SROs, FARA Africa

Figure 4. Land covers unsuitable for Fig. 5. Areas that are unsuitable and /or
bioenergy crops in Africa unavailable for bioenergy crops in sub-
Sahara’s arid and semi-arid regions

Figures 6 and 7 show the variation in arable land area and forest area between 1970 and
2005 for a range of countries. The largest variation is observed in Tanzania, where the forest
area has decreased by 6.2 million ha over this period. South Africa has seen the most
noticeable change in arable land, during the 1990s.

Arable land Forest Area

16000 45000

14000 40000
Mozambique Mozambique
Tanzania 35000
12000 Tanzania
Zambia Zambia
30000
10000 Malawi Malawi
1000 ha

25000
1000 ha

Kenya Kenya
8000
Mali Mali
20000
6000 Burkina Faso Burkina Faso
Senegal 15000 Senegal
4000 South Africa South Africa
10000
Botswana Botswana
2000
5000

0 0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
70

73

76

79

82

85

88

91

94

97

00

03
19

19

19

19

19

19

19

19

19

19

20

20

Figure 6. Arable land area evolution in Figure 7. Forest area evolution in selected
selected African countries 1970-2005 African countries 1970-2005

Furthermore, the project presented case studies in South Africa, Botswana, Zambia,
Tanzania, Kenya, Mali, Burkina Faso and Senegal. A second set of maps used the semi arid
and arid regions of each of these countries as a template on which available and suitable
areas for bioenergy crop production, roads, railroads, rivers and populated places are
sequentially shown and variously labelled (Watson, 2008). These maps also included data
from ESRI (2006) on populated places.

This assessment shows that Mozambique has immense agricultural potential, with an
estimated 36 million ha of arable land, of which only 10 percent is presently in productive
use (figures 8 and 9). The wide diversity of soil types and the diverse climatic conditions in
the country are suitable for a large variety of crops. Most of the agriculture practised in
Mozambique is non-irrigated. However, Mozambique’s network of more than 60 rivers has
allowed for the construction of irrigation schemes. Total potential irrigated area is estimated
at 3.3 million ha. At present the agricultural sector is still dominated by the family sub-sector
which accounts for 90 percent of the cultivated areas and includes 2.5 million households.
This sub-sector relies on rain-fed farming using very basic techniques resulting in low yields.
The remaining arable land is cultivated by large commercial farms that concentrate on cash
and export crops (SADC, 2008).

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The specific habitat requirements of various bioenergy crops needs to be evaluated in order
to identify the best potential candidates in different parts of each country. The current area
used for the main bioenergy crops (sugarcane, jatropha and sweet sorghum) is presented in
the next section.

5. Existing and potential Biofuel Crops in Southern Africa

Smeets et al. (2004) revealed that compared to all the world’s major regions, sub-Saharan
Africa has the greatest bioenergy potential as a result of large areas of suitable cropland,
large areas of unused pasture land and the low productivity of land under agriculture
(Watson, 2008). There are six main crops for producing conventional, so-called first
generation, biofuels in Southern Africa: sugar cane, sweet sorghum, cassava, jatropha,
maize, soybean and sunflower. The potential for each of these crops is assessed below.

Sugar Cane (Saccharum spp.)

Most of the land suitable for sugar cane production in the Republic of South Africa (RSA) is
already being used as such and therefore its potential for expansion is limited (Watson,
2007). Irrigated land in RSA increased in late 1990s but now stringent legislation has been
brought in to protect its scarce water resources. Therefore, unless drought tolerant varieties
are introduced, this too will be a limiting factor in the country, making it an unlikely candidate
for bioenergy in arid and semi-arid areas.

However, in southern Africa as a whole, Phillips (2002) estimated that a 50% increase in the
region’s 2000 sugarcane production, would require expansion of 200 000 ha of land and
create 100 000 jobs. Using GIS, it was discovered that large areas of land are available and
suitable for sugar cane cultivation, especially in Mozambique, Malawi and Zambia. The
analysis suggests that ‘land’ is unlikely to be a limiting factor in harnessing sugarcane’s
bioenergy potential (Watson, 2007). Indeed, between the three mentioned countries, it was
estimated that more than 3.7 million ha were available for sugar cane expansion, as
illustrated in Table 4.

Table 4. Land availability in Malawi, Mozambique and Zambia (Watson, 2008).


Malawi Mozambique Zambia
1000ha % 1000ha % 1000ha %
Country area 9408 78409 74339
Potentially suitable for sugarcane 742 7.9 4906 6.3 3546 4.8
Protected areas filtered out 595 6.3 4602 5.9 2433 3.3
Slopes > 16% filtered out 580 6.2 4530 5.8 2427 3.3
Crops & wetlands filtered out 316 3.4 3773 4.8 1726 2.3
Existing sugarcane filtered out 314 3.3 3771 4.8 1726 2.3
Areas < 500 ha filtered out 256 2.7 3470 4.4 1485 2.0
Unsuitable soils & rainfall filtered out 206 2.2 2338 3.0 1178 1.6

As Johnson et al. (2006) note, the potential of these countries alone is greater than the
current production of cane in SADC. Furthermore, they draw attention to the fact that the
areas identified in these countries are better suited for cane-growing than much of the land
that is currently under cane in South Africa and Mauritius. The IGBP/IHDP (1995) data
suggests that substantial areas of Angola are also suitable for sugarcane production. Now
that the country is politically stable and cleared of landmines, a similar GIS analysis to that
described above is currently being carried out under the Competence Platform on Energy

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Crop and Agroforestry Systems for Arid and Semi-arid Ecosystems – Africa (COMPETE,
2008).

According to a recent scoping study from E4tech (2006) for the DTI (BERR), southern
(SADC) Africa and the rest of Africa have similar potential for sugar cane production. The
scope was based on the assumption, validated by local experts from industry, academia and
NGO’s, that it could be feasible to expand sugar cane production in Southern Africa (SADC
region) from its current 0.7M ha to around 1.5M ha in the region within the next 10 to15
years (E4Tech, 2006). This would be enough to satisfy twice as much the current regional
consumption of sugar and in addition produce up to 7.3 billion litres of bioethanol each year.
This volume of bioethanol could replace around 30% of the gasoline required by the
projected southern African gasoline vehicle fleet of 17 million cars by 2020. Alternatively, if
blended into gasoline at a 10% rate, it could fuel between 50 and 60 million gasoline cars
(E4tech, 2006).

Cassava (Manihot esculenta)

Cassava also called manioc, tapioca or yuca, is one of the most important food crops in the
humid tropics, being particularly suited to conditions of low nutrient availability and drought
prone areas (Tonukari, 2004). Compared to other crops, cassava excels under suboptimal
conditions, offering the possibility of using marginal land to increase total agricultural
production (Cock, 1982, in Tonukari, 2004). Cassava is also used to produce starch for
industrial use and other products used in processed food. Sub-Saharan Africa is expected to
experience the most rapid growth in food demand in root and tubers averaging 2.6 percent
per year through 2020 (Scott et al. 2000 in Tonukari, 2004). This growth will account for
nearly 122 million metric tons with most of the increase coming largely from cassava, 80
million metric tons (66% of the total). Table 5 shows the Cassava production and use in
1993, and projected to 2020 (Scott et al. (2000) in Tonukari, 2008).

Table 5. Cassava yields, production and use in 1993, and projected to 2020 (Scott et al.
2000) in Tonukari, 2008).
Country Region Area (million Yield (mt/ha) Production Total use
ha) (million mt) (million mt)
1991 2020 1993 2020 1993 2020 1993 2020
Sub-Saharan Africa 11.9 15.9 7.4 10.6 87.8 168.6 87.7 168.1
Latin America 2.7 2.7 11.3 15.6 30.3 41.7 30.3 42.9
South East Asia 3.5 3.5 12.1 13.7 42.0 48.2 18.9 24.4
India 0.2 0.2 23.6 28.4 5.8 7.0 5.7 7.3
Other South Asia 0.1 0.1 9.4 13.5 0.8 1.3 0.9 1.4
China 0.3 0.3 15.1 20.2 4.8 6.5 5.1 6.4
Other East Asia na na na na na na 1.8 1.9
Developing 18.8 22.9 9.2 12.0 172.4 274.7 152.0 254.6
Developed --- --- 12.1 14.7 0.4 0.4 20.7 20.5
World 18.8 22.9 9.2 12.0 172.7 275.1 172.7 275.1

Ethanol can be produced from three main types of biomass raw materials: (a) sugar-bearing
materials (such as sugarcane, molasses, and sweet sorghum); (b) starches (such as corn,
cassava, and potatoes) and (c) celluloses (such as in wood and agricultural residues) whose
carbohydrate form is more complex and therefore more difficult to convert to ethanol
(Thomas and Kwong, 2001).
Some scenarios highlight the potential for a major future expansion of bioenergy, particularly
in the domestic cooking market, in which ethanol – made maize, sugar cane, sweet
sorghum, cassava, and sweet potatoes – would be used to make gelfuel that would
substitute for fuel-wood or charcoal (Utria, 2004, in Johnson and Matsika, 2006). For

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ethanol production purposes, the higher costs of producing ethanol from starch than form
sugar need to be considered when evaluating the promotion of different supply pathways
(Thomas and Kwong, 2001).

Sorghum and Sweet Sorghum (Sorghum bicolor L. Moench)

Sweet sorghum can be grown over a larger area of the RSA and can achieve high yields. It
is currently grown for food and for alcohol by small scale farmers and trials started in the
Eastern Cape in 2007 to assess its bioenergy potential.
Sorghum has shown low production in some countries in southern Africa, for instance, in
Botswana (Figure 8.a). In contrast, trials in Mozambique showed an increasing yield and
production without increasing the area harvested (Figure 8.b). In Zimbabwe, the three
aspects of production, yield and area harvested showed great fluctuation, which Eriksen et al
(2004) considered the result of climatic conditions (Eriksen et al, 2004).

Sweet sorghum is more drought tolerant than sugar cane and can therefore be grown over a
wider area whilst still achieving high yields. Trials have also been undertaken in other
southern African countries where it has been used as a supplement to sugar cane for
ethanol production. It has been shown capable of complementing sugar cane ethanol by
extending the production season. Furthermore, the non-sugar fractions of the crop can be
used as feed for livestock and the seeds are already a common staple food, helping to
address the issues of biofuels competition with food production. Thus, sweet sorghum is
seen as a biofuels crop with high potential for the future in the semi arid tropics, including
southern Africa.
Sorghum Trends in Botswana Sorghum in Mozambique
3.50E+05 4.50E+03 6.00E+05 1.20E+04
4.00E+03
3.00E+05
Production (Mt) & Area (ha)

5.00E+05 1.00E+04
Production (Mt) & Area (ha)

3.50E+03
2.50E+05
3.00E+03 4.00E+05 8.00E+03
Yield (Hg/ha)

Yield (Hg/ha)
2.00E+05 2.50E+03
3.00E+05 6.00E+03
1.50E+05 2.00E+03

1.50E+03 2.00E+05 4.00E+03


1.00E+05
1.00E+03
5.00E+04 1.00E+05 2.00E+03
5.00E+02

0.00E+00 0.00E+00 0.00E+00 0.00E+00


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Year
Year
Area Harv Production Yield Area Harv Production Yield

Sorghum in Zimbabwe Sorghum in South Africa


3.50E+05 9.00E+03 8.00E+05 4.00E+04

8.00E+03 7.00E+05 3.50E+04


3.00E+05
Production (Mt) & Area (ha)

Production (Mt) & Area (ha)

7.00E+03 6.00E+05 3.00E+04


2.50E+05
6.00E+03
Yield (Hg/ha)

Yield (Hg/ha)

5.00E+05 2.50E+04
2.00E+05 5.00E+03
4.00E+05 2.00E+04
1.50E+05 4.00E+03
3.00E+05 1.50E+04
3.00E+03
1.00E+05
2.00E+03 2.00E+05 1.00E+04
5.00E+04
1.00E+03 1.00E+05 5.00E+03
0.00E+00 0.00E+00 0.00E+00 0.00E+00
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Year Year
Area Harv Production Yield Area Harv Production Yield

Figure 8. Production, yield and area harvested of grain sorghum in the four case study
countries of Botswana, Mozambique, South Africa and Zimbabwe (source: FAOSTAT,
2004).

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Jatropha (Jatropha curcas L.)

By 2004, 400 million Jatropha curcas L. trees were planted on 45,000 ha in North West
Province of the Republic of South Africa. The South African Government then called for a
moratorium on further commercial planting until it was convinced that (a) the plant was not at
risk of becoming an invasive alien species, and; (b) its toxicity does not pose an
environmental and health risk. Commercial plantings were given the go-ahead in 2007. A list
of companies which have invested in jatropha in Africa is given in Annex 2. This includes
companies such as D1 Oils, which plans to double their current area under the crop and
Emerald Oil International (Pty) Ltd, who commenced construction of a biodiesel plant in
Durban with a 100 000 tons per year capacity. In addition to obtaining feedstock from South
Africa, this company will source Jatropha curcas seeds in Zimbabwe, Zambia, Malawi and
Madagascar. It has an agreement with the KwaZulu Natal Agricultural Extension to facilitate
the establishment of an extensive network of Jatropha hedges (Moodley, 2007). Owen
Sithole College of Agriculture has a trial project involving 100 trees (Henning, 2006).

Maize (Zea mays spp)

In 2006, Ethanol Africa (with Ecofields, Grain Alcohol Investments and Sterling Waterford as
key shareholders) became South Africa’s first bioethanol producer using surplus maize. Due
to increased and improved inputs and improved cultivars, the country’s maize production
exceeds domestic demand in most years– a demand that includes the needs of Botswana,
Lesotho, Namibia and Swaziland as part of an agreement of the long standing South African
Customs Union. In December 2007, Parliament decreed that maize would no longer be used
for this purpose as it was considered a staple food crop.

Soybean (Glycine max or G. soja)

Soybean has been cultivated in several countries in Africa though in some of them the data
shows it has only recently been incorporated into the agriculture systems. The only country
which has shown an increment in area harvested, since the mid 1990s, has been South
Africa. The production of soybeans in South Africa has increased from 770 t/year in 1970 to
424 000 t/year in 2006. The second ranked country in terms of harvested area is Zambia
which also increased its production from 173 t/year in 1973 to 12 000 t/year in 2006
(FAOSTAT, 2008).

Soybean area harvested

275000
250000
225000
200000 Tanzania
Zambia
175000
Kenya
150000
Mali
ha

125000
Burkina Faso
100000
Senegal
75000
South Africa
50000
25000
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Figure 9. Soybean area harvested for Southern African countries since 1970.

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Sunflower (Helianthus annuus)

Sunflower production data is not reported for most of the countries reviewed in this report
(see Figure 10). Nevertheless, South Africa has the greatest reported area harvested for
sunflower seed (FAOSTAT, 2008). It is not clear if the fluctuations respond to the market or
to internal changes in the agriculture system experienced in South Africa, especially at the
end of the Apartheid (Eriksen et al, 2004).
In the FAO statistical system (2008) there is reference to some countries production of oil
crops but it is not clear which crops are included (e.g. Zambia and Tanzania).

Sunflower area harvested

900000

800000

700000
Tanzania
600000
Zambia
500000 Kenya
ha

400000 Botswana
South Africa
300000
Malawi
200000

100000

0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
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1994
1996
1998
2000
2002
2004
2006

Figure 10. Sunflower area harvested for Southern African countries since 1970.

Palm Oil (Elaeis guineensis Jacq.)

The palm oil tree (Elaeis guineensis Jacq.) is indigenous to West Africa, with natural stands
occurring along a 300-mile wide coastal belt ranging from the Gambia to Angola. Oil palm
also extends eastward through central Africa and into eastern Africa. In 2002, the African
countries which held large areas covered by oil palms were Nigeria (2.6 million ha), Guinea
(310,000 ha), D.R. of Congo (formerly Zaire) (220,000 ha), Cote d’Ivoire (190,000 ha),
Ghana (125,000 ha), Cameroon (80,000 ha), and smaller areas in Benin, Burundi, Central
African Republic, Republic of Congo, Equatorial Guinea, Gabon, Gambia, Guinea Bissau,
Liberia, Senegal, Tanzania, Togo, and Uganda (USDA, 2002).
This area of palm oil has extended especially since a number of private initiatives have
acquired land to plant oil palm and some international organisations, such as the World
Bank, have promoted palm growing in Africa as well as the Malaysian Government (World
Rainforest Movement, 2002).
With the controversy over palm oil and rainforest clearance, it is worth noting that FAO, in
collaboration with breeders at ASD in Costa Rica, planted cold-tolerant palms in Africa.
These palms were able to survive outside of rainforest areas and were planted in Malawi,
Zambia, Ethiopia and the highlands of Kenya and Cameroon. In addition to not competing
with rainforest, the precocious hybrid showed improved drought tolerance and gave high
yields with minimal inputs (Griffee et al., 2004).

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Potential Indigenous Biofuel Crops

Pappea capensis Eckl & Zey. and Ximenia caffra Sond. are trees indigenous to southern
Africa. In 2006, South Africa’s Department of Mineral and Energy Affairs suggested that oil
from their seeds may have potential for biodiesel production. This suggestion is based on
their being able to grow in arid regions and their seeds containing high oil concentrations.
Individual trees of both species can potentially produce up to 10 kg of seed, 65% of which
can be converted into bio-oil or biodiesel. One ha of trees could supply 2400 l of oil, or 1560 l
of biodiesel per year. Trees are more cost effective to cultivate than herbaceous crops, as
they need fewer inputs.

5.1 Food and bioenergy crops in Africa.

The debate on fuel versus food that developed with the food prices in 2008 has produced
some reports that have been looking at the potential problems at regional level. For instance,
the report from UEMOA (2008) conducted in West Africa. The report concluded that region
has the land, resources and demand to improve their agricultural and bioenergy production.

This report also considered that policy changes that improve agricultural productivity and
include more arable land into sustainable use have the potential to improve food and fuel
production. Furthermore, the use of waste and residues for bioenergy also contributes to the
reduction on the problem of fuel and food production (UEMOA, 2008)

The following section covers the case studies considered for the report. These case studies
look at the country characteristics, their potential for bioenergy crop productions including
the stakeholders involved and the possibilities for food and fuel production without
jeopardizing the current and future food production in Sub-Saharan countries.

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CASE STUDIES

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6. SENEGAL CASE STUDY

6.1 Country’s characteristic:


Location
Senegalese territory is located between 12° 8 and 16 ° 41 north latitude and 11 ° 21 and 17 °
32 west longitude.
Senegal is the most western country in Africa and is bordering at south with Guinea and
Guinea Bissau, at East with Mali, at North with Mauritania and at West with the North
Atlantic Ocean.

Geographical characteristics:
- Area: Total surface: 196,190 km² with 192,000 km² of land and 4,190 km² of water.
Coastline is of 531 km.
- Terrain: The country is generally flat with hills in Thies and foothills in the South oriental
part.
- Climate: The country is characterized by a dry tropical climate. Temperatures are
moderate along the coast (16-30°C) and rise gradually as one moves away towards the
continent (35-45°C). Highest temperatures are observed in May-June.

From north to south, four areas stand out:


 An arid or semi-desert area with an annual precipitation not exceeding 350 mm;
 A semi-arid continental dry area with isohyets between 350 and 700 mm;
 A sub-humid zone, less hot and less dry than the previous ones, and characterized by
an annual rainfall ranging between 700 and 900 mm;
 A wetland characterized by high rainfall of around 1000 to 1200 mm.

Figure 6.1 Map of Senegal showing location relative to its neighbouring countries

The climate is divided into two seasons: A rainy season, from July to October and a dry
season from November to June. In the oriental part of Senegal, rains start from end of May.
Senegal is characterized by high rainfall variability from one year to another with the peak of
the rainfall in August.
Winds: The climate is influenced by three air masses:

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ERA-ARD, SROs, FARA Africa

• The Alize, a sea breeze from Azores anticyclone, is a damp and cool wind but enable to
give rainfall.
• The Harmattan, a wind especially hot and dry, coming from the continent.
• The Monsoon is a very humid wind coming from the St.Helena anticyclone. It brings rains
from the South-West.

Hydrography: The country is crossed from east to west by three rivers: The Senegal
(1700km), The Gambia (750km) and The Casamance (300km).
The Senegal River is the main water resource of the country and feeds the groundwater and
the lake Guiers. This one is the largest permanent freshwater reserve in the country.
Significant groundwater resources are available for the implementation of a comprehensive
water program. This water can be used in further potential hydraulic programs. The
renewable water resources are estimated to 39.4 km3 (1987).

Environmental characteristics: The key environmental challenges are illustrated by a


fauna and a flora threatened by poaching, deforestation, overgrazing, soil erosion,
desertification and overexploitation of fishing resources.

6.2 Population size and characteristics


• Population: 12,893,259 habitants in 2008
• Population density: 65 hab/km²
• Urban population: 51%
• Rural population: 49%
• Women in 2008: 51%
• Men in 2008: 49%

6.3 Gross Domestic Product, Human development Index:


• GDP (official exchange rate): 13 900 million USD (2008)
• GDP per habitants : 1600 USD (2008)
• Human development index : 0.499 (2005)
• Growth rate : 3.3% (2008)

• GDP - Composition per sector (2008):


o Agriculture : 16.1%
o Industry : 19.3%
o Services : 64.6%
• Population below poverty line: 54% (2008)

6.4 Main food crops:

According to Matsumoto-Izadifar (2008), Senegal has seen some agricultural products, such
as cereals and horticulture, growing. Production of rice, maize and manioc has increased in
recent years to meet rising local demands in urban areas. The fruit and vegetables sub-
sector presents the main hope of diversifying Senegal’s agricultural export structure. Grown
mainly in the Niayes, the Senegal River Valley, Casamance and Dakar regions, fruits and
vegetables for export have done well since the 1994 devaluation of the CFA franc. Senegal’s
geographical and climatic situation enables out-of-season crops to be grown for the
European market. The primary sector grew annually at an average 6.2 per cent between
2002 and 2005 (Matsumoto-Izadifar, 2008). Despite Senegal’s huge potential in horticultural
exports, market opportunities at national, regional and international levels remain

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underexploited. Groundnuts earn less foreign revenue, with a 60 per cent drop in output over
the past 20 years and do not make it any more a reliable market.

According to the FAO (FAOstat data, 2009) millet and peanuts are the main crops produced
in Senegal Table

Table 6.1 . Main crops in Senegal by hectare and tons

Product Has tons


Peanuts 607,195 331,195
Millet 686,892 318,822
Maize 143,769 158,266
Sorghum 155,919 100,704
Rice 80,312 193,379
Tomato 6,594 178,600
Onions 5,100 142,000

Source: (FAOstatdata, 2009).

Several food crops are imported and exported to and from Senegal (FAOstat, 2009). The
following tables show these products by ton and value in USD.

Table 6.2 Top 10 main agricultural and food crops imports

Rank Commodities Quantity (tonnes) Value (1000$)


1 Rice Broken 1018729 350397
2 Wheat 395742 133974
3 Soybean oil 101776 93160
4 Milk Whole Dried 21444 79722
5 Malt Extract 17455 54255
6 Food Prep Nes 20204 53684
7 Sugar Refined 69387 41377
8 Palm oil 34885 30454
Tobacco,
9 3276 28481
unmanufactured
10 Maize 97272 24421

Table 6.3 Top 10 export of main agricultural and food crops


Rank Commodities Quantity (tonnes) Value (1000$)
1 Groundnut oil 68675 67617
2 Food Prep Nes 11627 32189
3 Cotton lint 21415 28522
4 Rice Broken 73139 24729
5 Tobacco Products Nes 1337 16972
Tobacco,
6 1758 15984
unmanufactured
7 Cigarettes 1783 13710
8 Tomatoes 8858 8639
9 Beans, green 6685 6512
10 Pastry 6581 6069
(Faostat, 2009)

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6.5 Predominant land characteristics:

Near 45 percent of Senegal is forested. Of this, near 18 percent is considered pristine


primary forest, one of the higher rates in West Africa. While Senegal lost some 675,000
hectares of forest between 1990 and 2005, the country's deforestation rate has only
increased by 5 percent since the 1990s. Deforestation is mostly the result of clearing for
fuelwood, charcoal, and logging, though poaching, wildlife trafficking, and hydroelectric
projects have further degraded forest areas. Government officials have blamed deforestation
for increased soil erosion, flooding, and periodic drought which has had an adverse impact
on regional agriculture (Mongabay, 2009).To slow the encroaching Sahara desert, Senegal
announced in 2005 that it planned to promote a "Great Green Wall" of trees stretching for
nearly 7,000 km (4,375 miles), from Dakar to Djibouti along the Sahel. Other African
countries said they will participate in the massive reforestation project as well.

Agriculture occupies 77 percent of the economically active population. However, only 12


percent of the land area is cultivated. Senegal is among the world's largest producers of
peanuts (NADEV, 2009).

Land access, encompassing access to natural resources such as soil and water, is governed
through land tenure systems legally or customarily defined. Regulations of land tenure
govern who can use what resources, either land, water, livestock or trees, and under what
conditions (Platteau et al, 2005). In Senegal the land tenure system is largely a customary
one in which a Chef de Terre, or Land Chief, acts as custodian of community land and
distributes it among households as needed. This land is then inherited through family lineage
from father to son. In recent decades, a shift to intensive agriculture and private tenure has
reduced the powers of the lineage land chief. Yet the practice of collective management of
family land is still largely observed (Platteau et al. 2000 in Platteau et al 2005) In many sub-
Saharan African countries, including Senegal and Burkina Faso, land tenure is determined
by both statutory and customary laws.

6.6 Characteristics of livelihoods:

Despite of a good economic performance and sustained growth in recent years, the standard
of living of the Senegalese remains very low.
Inadequate agricultural production, low capacity of the economy to create sustainable jobs
and inadequate resources allocated to social services contribute to poverty, which already
affects nearly 54% of the population.

- Gross national income (GNI): $ 540 per capita,


- Life expectancy is just 56 years,
- Literacy rate that does not exceed 40% of the adult population,
- UNDP Human Development ranking in 2009: Senegal ranks 166th from 182 countries.
Rural areas are characterized by poverty making 75% of the rural population poor. They are
mainly farmers, women and young people who survive on subsistence crops and livestock
on small plots that are often not sufficient to cover the needs of their families.
Groundnut production accounts for around 40 per cent of cultivated land, taking up 2 million
hectares, and provides employment for as many as 1 million people

6.7 Policies in place and link with the bioenergy sector.

Agricultural policy
The agricultural policy in Senegal relies mainly on the “Agro-forestry-pastoral Guidance Law”
(Loi d’Orientation Agro-sylvo-pastorale) which was initiated by the Government and adopted

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in National Assembly by May 25, 2004. This Guidance Law has defined the national
agricultural and rural development policy for the next twenty years. Its specific objectives
are:
- Formal recognition of agro-forestry-pastoral professions and professional organizations,
social protection and the definition of a legal status for farm exploitations as well as for land
assets security and water control;
- The diversification of production, the integration of streams, market regulation and the
development of infrastructures and public services in rural areas;
- The promotion of social equity in rural areas and protection against natural calamities and
hazards related to agro-forestry-pastoral activities;
- The development of agricultural information, education and training; capacity-building for
rural organizations;
- The development and sustainable financing of agricultural services.

In order to implement this national policy, the Government has elaborated some
development programs such as the Plan REVA (2006) and the GOANA (Great Agricultural
Offensive for Food and Abundance, 2008).
The Plan REVA or Return to Agriculture aims to establish populations including youth and
women in their land in particular migrants and returnees. It aims also to increase significantly
agricultural production including diversification crops. Plan REVA tries to meet the
objectives of (i) the Accelerated Growth Strategy, (ii) the Millennium Development Goals and
(iii) the fight against poverty (Strategy Document for Poverty Reduction).
Within the framework of crop diversification, the Plan REVA has developed an important
Biofuel production program at national level.

Energy policy
Access to energy services remains a problem despite the increase in the rate of
electrification in particular that of rural electrification which increased from 6% in 2000 to
14.2% in 2006, while for urban areas, this rate is only 74.1%.
Electricity is of thermal origin. SENELEC (production, supply and sale) has the monopole of
electricity distribution in Senegal: SENELEC possesses a total settled power of 295, 6 MW
for an annual consumption of 300000 T of oil.

Some industrial entities such as CSS, SONACOS, ICS, SAR, Grands Moulins and SNTI,
produce electricity for their own needs and resell the surplus to SENELEC.
Strong energy dependence is a bottleneck for the economy. The oil bill of Senegal, which
rose from 158 million USD in 2000 to 620 million USD in 2006, leads to a high output
negatively affecting currency on the country's trade balance.
Facing a rising crude price, subsidy equivalent to a power plant (234 million USD) has been
paid to hold the price of electricity in 2005-2006.
In order to find a solution to these problems, the Government has adopted a new energy
orientation based on the development and use of renewable energies such as solar, wind,
Biofuel and hydroelectricity.

Environment policy
The problems and constraints related to environmental management in Senegal derived
from unsustainable practices: obsolete industries, average age of vehicles about 15 years
old, unsustainable agricultural methods, forest degradation and difficulties in waste removal.
This situation exacerbates substantially population’s poverty and vulnerability.
To find a solution to these problems, Senegal has taken various initiatives including the
development of a sustainable development strategy and a Sector Policy Letter for
Environment (LPSE) for the reversal of trends in perspective of achieving the Millennium
Development Goals. Senegal has signed the Kyoto Protocol and a legislative and regulatory
framework for environmental protection has been adopted since 2005.

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Biomass consumption (40% for firewood and 16% for charcoal) represents a strong forest
attack. Senegal has decided therefore to support any initiative aimed at diversifying energy
sources, including renewable energies.

It is in this sense that Senegal has adopted a new energy policy that aims to:
• develop the institutional capacity and energy production
• promote the driving force in productive activities• involve private operators, village
associations and local governments in infrastructure development and energy service
• ensure the financing of energy sector development;
• diversify energy sources and technologies;
• promote energy efficiency and renewable energy implement a program investment for
access to energy services for economic and human development
• improve and secure access of populations to domestic fuels in a perspective of
biomass transition;
• increasing access to energy services in rural and sub-urban areas in order to facilitate
the functionality of basic infrastructures (schools, health facilities, storage facilities etc.)
• improve access to oil.

6.8 Biofuel industries/programmes development:

Biofuel program
Since 2006, Senegal has launched a National Program for Biofuel Production, with the aim
of contributing to national energy self-sufficiency in the production of bio energy alternatives.
This program provides, by 2012, to cover 321000ha of Jatropha plantation in the 321 Rural
Communities that form the country, with a production goal of 1190.000.000 litres of refined
oil from seeds.

The objectives of the Senegal Biofuel program are:


• Crop Diversification
• Reducing household and state oil invoice.
• Energy Independence
• Sufficiency in diesel from 2012 through satisfaction of national needs
• Production of ethanol from crops like sugar cane.
• Bioelectricity production from power plants that operate with Jatropha crude oil.
• Jobs creation and agricultural jobs sufficiently paying. (about 100 000 direct jobs)
• Accelerate the modernization of agriculture.
• Creation of an attractive and appealing environment in rural areas.
• Improvement of balance of trade and payments.
• Improving the environment.
• Reducing poverty and disparity between rural and urban world.

The programme will be implemented in three phases:


- Phase 1: Production of raw material (Jatropha seeds) 2007 - 2012.
- Phase 2: Processing Jatropha seeds into oil
- Phase 3: Biofuel distribution
In the first phase, the programme has already planted 5293 ha (2007-2008) and is expecting
to plant 10 000ha in 2009 while producers demand is for 15,500 ha. Rural producers and
organizations are now keener to the crop. Demands generally come from individuals, rural
associations, industries (SOCOCIM), NGOs, and rural association, women and youth
groups.

Program organization:

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A National Technical Committee, headed by the Minister of Agriculture is responsible for


implementing the seed production at national level. The technical committee has also
technicians from the Ministry Department, peasant organizations, professional agricultural
organizations, elected officials; deputy Governors for Development, youth and women village
association’s representatives, partners in Development (NGOs), projects and programs.
At departmental and local levels, supervisors are nominated by the farmers' organizations.
Technical coordination is ensured by the Senegalese Institute for Agricultural Research
(ISRA). A National Program Supervisor represented by the President of the National Rural
Councillors Association in Senegal (ANCS) is responsible for the sensitization component
towards rural authorities and rural producers. He should feedback their expressions of needs
to the program’s National Coordination.

6.9 Crops used for Biofuel:


Types: Jatropha curcas for biodiesel and crude oil fuel; Sugarcane for ethanol production.
Biofuel conversion technology from Jatropha seed has not started yet. However CSS
(Senegalese Sugar Company) has inaugurated in 2008 a new bioethanol plant. The distillery
from molasses has an annual production capacity of 10 to 12 million liters of ethanol,
intended for the company consumption and Senegalese market supply (clean fuel,
pharmaceutical alcohol and drinks).
For its second phase (processing Jatropha seeds into oil), the National Biofuel Program has
the intention to use oil presses or light expeller units for on-farm or community Biofuel
production. Biodiesel production plants will be used at industrial level.

Market: The Biofuel program is actually at plantation stage. However, actors involved in the
production (rural producers, private actors and institutions) are already organizing
themselves into a professional network in order to anticipate and prepare market
dispositions as well as production and supply chain unionization. The founding general
assembly of the Biofuel sector was held on September 2009.

6.10 Implications for land tenure, water and employment:


Land tenure: In its scope, Senegal is composed of 321 rural communities (rural
administrative zones). The national Biofuel program has planned to cover 1 000ha of
Jatropha in each rural community. This very arithmetic orientation may create land tenure
problems because, some of the rural communities do not have enough land to host 1 000ha
for this new additional crop, unless there is land expropriation or potential conversion from
land-for-food crops to land-for- energy crops.

Food security may also be affected when good oil price conditions can attract peasants to
switch their traditional food crops to Jatropha cash crop. National Biofuel program’s
approach should give consideration to this situation and reformulate its position about land
tenure.
Water: In order to mitigate water problems or conflicts with food crop irrigation, Senegal has
opted for rain fed cultivation of Jatropha which is a plant with less water need. Though it is
important to notice that, in areas with rainfall less than 700mm, young Jatropha plantations,
for survival, need to be watered in the first two years. Water problems may then occur in
most rural communities comprised within these isohyets. In these agro-pastoral areas,
conflicts in water affectation can be expected if Jatropha is planted at large scale as planned
in the Biofuel program.
Employment: The National Biofuel Program has the aim to boost employment in rural areas.

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6.11 Mapping of policy and institutions

First hand player.


APIX – Agence Nationale pour la Promotion des Investissements et des Grands Travaux
(National agency for the promotion of investment and major works programs)
- Mission:
• Improving the Senegalese business environment
• Promoting Senegal, as an investment destination
• Researching and identifying national and foreign investors
• Follow-up of contacts and evaluation of investment projects
Services:
• Providing economic, business-related and technological information on a permanent basis
• Welcoming and supporting investors throughout the investment chain
• Supporting investors for the formalities of registration and for obtaining the various
administrative authorizations
• Directing towards financing structures/ Providing assistance in the search for partnership;
• Solving of administrative problems.

Besides this, APIX fulfils all the functions of a one-stop office by:
• Issuing in 10 days the certification to the Investment Code and providing the exemption
certificate for the customs formalities
• Issuing in 21 days the certificate to the status of an off-shore export company
• Carrying out within 48 hours formalities for administrative registration (NINEA - National
Identification Number for companies and administrations, IPRES-pension fund-, Social
Security fund, in the same place, and in the same form
• Ensuring a follow-up of the approved investment projects

National Ministries/Secretariats involved:


The Government’s political will to develop Bioenergy is real and is illustrated by the creation
of a ministry in charge of Biofuel. However, instability is denoted in the research of adequate
ministerial supervision for hosting this Biofuel department. Since its beginning in 2007,
Biofuel program has been hosted successively by the following ministries:
- Ministry of Agriculture and Aquaculture and Biofuel (2007)
- Ministry of Scientific Research and Biofuel (2008 – September 2009)
- Ministry of Energy and Biofuel (October – December 2009)
- Ministry of Biofuel and Aquaculture (since December 2009)
Though the Biofuel program will be run by the later ministry, other ministries still remain
involved in the bioenergy planning and application: Agriculture, Energy, and Scientific
Research.

• Directions and institutions involved


ANCAR (National Agency for Rural and Agricultural Advisory). The Agency's main task is to
establish an advisory service to producers and to meet their needs through contractual
arrangements. The approach to agricultural and rural council is based on a true partnership
with farmers and key stakeholders in rural development.
ANCAR intervenes in all sectors (agriculture, forestry, and environment) and includes
several functions (advisory support, transfer of appropriate technology, awareness, training,
information, and intermediation) and activities (production, marketing, supply, credit,
processing, crafts…). ANCAR has been officially assigned as a public partner in the
implementation of the National Biofuel program

ISRA (Senegalese Institute for Research in Agriculture). Its main task consists of designing
and implementing of research programs on crop production, forestry, animal and fishery and

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rural economy. The coordination of the National Biofuel program is carried out by ISRA.
Important research on Jatropha is being implemented particularly on selection, multiplication
and agronomy. In the program, Jatropha seedling production and propagation is under
ISRA’s prerogatives.

National Technical Committee is created at the beginning of the Biofuel program by the
ministry of Agriculture. The Committee is responsible for the implementation of the program,
particularly seed production in rural areas. It is headed by a national coordinator (ISRA) and
supervised by the President of the National Rural Councillors Association.

Regional and Local authorities involved in bioenergy plans, programmes, projects:


Chiefs of rural communities: These elected administrative authorities, in collaboration with
their local community council, are the only one to have ability to identify, select and allocate
land. One their mission is to facilitate in place, state programs implementation; that is why
they are playing an important role in the National Biofuel program.
Women groups and youth associations: With the enthusiasm created by the new bioenergy
sector, most women and youth groups are organizing themselves in order to take full
advantage in opportunities offered the Biofuel program. They are already implicated in the
multiplication of Jatropha plants they sell to the program. Few women groups have already
signed MOU with the Biofuel program for Jatropha plants production and supply.
Farmer’s organisations: At departmental and local levels, supervisors are nominated by the
farmers' organizations.

NGOs involved
• ENDA Energy aims to contribute to a better understanding of energy and development
issues in Africa from technical, economic, political and social standpoint. ENDA has also
the objective to contribute at the definition of conditions for better access to energy
services as a priority for the poorest people; and also to participate to the development
and implementation of Multilateral Agreements on Environment by African countries:
Conventions "Desertification", "Climate Change", "biodiversity", etc.
• CULTESA (Centre for Research in Biotechnology –Spain) is helping the Biofuel program
to get adequate needed infrastructures in biotechnology for its multiplication activities of
planting materials. A modern shade house of 5 000m² is created for acclimatizing of
Jatropha vitroplants, and a training plan in the use of biotechnology for Jatropha
propagation, is adopted and is actually in execution for Senegalese technicians.

Other stakeholders identified.


Some local industries are involved in Biofuel production but mainly for their own use. These
are:
• CSS (Senegalese Sugar Company) is producing Ethanol from Sugarcane
• SOCOCIM (Local cement Company) aims, in very short term, to use Jatropha as
additional energy feedstock for its operation. Plantation of Jatropha has started since
2007.
• SODEFITEX (Local cotton Company) is experimenting cultivation of sunflower for Biofuel
production. For the company, irrigated sunflower, as annual crop, can integrate local crop
rotation and bring additional revenues to their partners (cotton producers) during dry
season.

6.12 Links in biofuels development in Senegal

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Executive body Legislative body


Min Biof & Aqu
WYG APIX
NTC Min.
Energy
F. org y
Min Agricult
ISRA
Chief
rural
ANCAR
comm.

ENDA

Cultesa CSS

SOCOCIM

NGOs Industries

Legend:

Min Biof & Aqu : Ministry for Biofuel an Aquaculture


Min. Energy : Ministry for Energy
Min Agricult : Ministry of Agriculture
Chief rural comm. : Chiefs of rural communities
APIX : National agency for the promotion of investment and major works programs
ISRA : Senegalese Institute for Research in Agriculture
NTC : National Technical Committee
WYG : Women and Youth groups
F. org : Farmers organization
ANCAR : National Agency for Rural and Agricultural Advisory
Cultesa : Centre for Research in Biotechnology – Tenerife - Spain
SOCOCIM : Local cement industry
CSS : Senegalese Sugar Company
SFTX : Cotton industry

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6.13 Summary of biofuels activities implications in Senegal

FARM MARKET
Predominance INDUSTRY DState and
of small and Jatrophafor oil and organisms officially
marginal biodiesel recognized by State
farmers Ethanol

Issues - Enough marginal lands suitable for Jatropha Biofuel conversion technology from - No market supply yet; untested
cultivation. Jatropha seed has not started yet market
- Jatropha is locally adapted and well known as - Real market potential for local
fence crop. consumption.
- Raising demand from farmers to join the
national Biofuelprogram (NBP).
policies - Strong Government political will, illustrated by - NBP has opted for light expeller - In NBP conditions, biodiesel will
a new ministry for Biofuel and by the NBP units for on-farm biofuel be sold to the State or to private
implementation production and encourage the market organizations in a price
- The NBP provides seeds and seedlings with development of biodiesel fixed by a State/partners
high yield varieties to partners. It offers also production plants at industrial level agreement.
technical support - Government through APIX -
- Many on-going agricultural research. (Agency for the promotion of
Investments) provides needed
administrative, informative and
counseling supports to investors.
Emergent - Professionalization of the Biofuel sector: A - Expansion of small scale expelling Private actors and structures are
patterns/rel Biofuel chain network has been launched in units is expected in rural areas. already organizing themselves into
ationships 2009. - Raising interest and demands a professional network in order to
- Emergence of new private Jatropha nurseries from local and foreign investors, on anticipate and prepare future
run by trained rural women groups and youth investing to biofuel market dispositions
groups. - For biodiesel plants, two types of
- Land tenure based on protection of national feedstock from farmers is planned:
patrimony: land belongs to the state and is not oil and seeds
subject for sale or lease.
Impact/ - Valorization of poor lands in this desert - Acquisition of new technical skills - New source of income for
future margin country. for rural populations involved in on- Jatropha seed and oil rural
implications - Soil fixation against land erosion. farm biofuelproduction. producers.
- New income generation for rural population. - Boost employment and increase - Significant reduction of mineral oil
- Risk for food to Biofuelconversion because of income in rural areas. invoice at national level
a lack of policy protecting food production - Protection of the national
areas. economy: For any biodiesel
industry establishment, 51% of the
capital should belong to Senegalese
(according to the NBP conditions).

6.14 Conclusions

Senegal’s interest in promoting a biofuels programme (NBP) responds to the ongoing


activities mainly with Jatropha. The country does have restrictions on energy access and
most of the fossil fuel needs to be imported.
There are areas in Senegal where water availability does not represent a problem for
agriculture while the extension of the Sahel continues to be a problem. Considering the
development of biofuels as an activity in the agriculture sector, there is still a need to link the
objectives and in-field activities of the Agriculture Ministry, the Biofuel Ministry and with the
Energy Ministry.

According to the research more rural communities are engaging in the cultivation of Jatropha
but there is still little evidence of the mechanisms necessary to fully incorporate farmers in a
more skilled manner in these activities. Despite the imports on food products (e.g. rice) there
is also no evidence of a threat of food production regarding the biofuels activities in the
country. Nevertheless, the future activities (considering the Biofuel Program) need to be

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cautious for large scale production. The Biofuel Programme is focused on one single crop
(Jatropha) and despite that one of the objectives is to look for crop diversification, there
might be the risk of putting all efforts into one single crop.

However, Senegal should take opportunity from this less water needed crop (Jatropha) to
revalorize its marginal Sahelian lands. Large scale production and the increasing number of
demands from foreign investors could be oriented toward these lands. While in rural farms
and in food production areas policy should be better focused to crops that can assure food
and energy. Sweet sorghum and Moringa oleifera are adapted and well known by local
farmers. These two food/energy crops will at the same time contribute to the achievement of
diversification objectives.

The country is continuing an Agricultural reform process focused on food products but also
on other crops (e.g. groundnuts). These reforms may have a benefit in terms of agricultural
production such as improving the yields. If adequate measures are taken there is no need to
compromise food and biofuel production at the farm level, benefiting the farmers with
additional income and if possible access to electricity.

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7. MALI CASE STUDY

7.1 Country’s characteristics.

Location
Located in West Africa, Mali is lying between 10° and 25° N and 4° and 12° E. Neighbouring
countries are Algeria, Niger, Burkina Faso, Ivory Coast, the Republic of Guinee, Mauritania
and Senegal.

Geographical characteristics
Surface: 1,241,328 km2 out of which 65% is desertic or semi-desertic. Country divided in
three decentralised layers of government: regions (8), cercles (49) and communes (703)
plus the capital district of Bamako.

Figure 7.1 Map of Mali showing location relative to its neighbouring countries

Environmental characteristics
Food production in Mali has historically been highly variable due to fluctuating rainfall, which
also influences river levels and hence irrigated as well as rainfed agriculture. This variability,
combined with a low percentage of total production entering the market, makes market rises
and quantities highly volatile. For example, during the 1980s and 1990s, millet and sorghum
prices sometimes varied by a factor of 1:4 from year to year (Dembele and Staatz, 1999).
Such instability makes food, and especially cereal, marketing risky, whether carried out by
the public or private sector.

7.2 Population Size and Characteristics

Provisional data from the 4th General Census of the Population and Habitat (INSTAT, 2009),
April 2009 showed a total population of 14,517,176 inhabitants. This represents an averaged

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annual population growth of 3.6% since 1998 when the population was 9,818,911
inhabitants. Women account for 50.4% of the population. The census also counted a total of
2,369,866 households and 11,453, settlements (villages, fractions, quartiers). Hence, in
average 6.1 people live in one household and around 1 268 persons compose a mean
Malian settlement. Population is not evenly distributed through the Malian territory. The most
populated region is Sikaso (18%), followed by Koulikoro (16.7%) and Segou (16.1%). The
less populated is Kidal (0.5%). The capital district of Bamako represents 10% of the total
population (UNDAF, 2009).

7.3 Gross Domestic Product and Human Development Index

The human development index (HDI) for Mali is 0.371, which gives the country a rank of
178th out of 182 countries (UNDP, 2009). Touched by the financial and food crisis the
Malian government has employed important fiscal resources to ensure that primary
necessity articles remain accessible to the population. Economic growth has slowed down
from 8% in 2008 to around 4.1% for 2009. Similarly inflation has changed from 1.4% in 2007
to 9.2% in 2008. The hike of fuel prices during 2008 was taken by the Malian state through
substantial fuel subsidies to remain competitive in the subregion. Despite being a net fuel
importer and land locked, fuel prices in Mali are lower than in neighbouring coastal countries.
During 2008 the prices of cereals was increased by 33% (UNDAF, 2009).

7.4 Main food crops

The main crops in Mali are rice, cotton, millet, sorghum, karite (sheanuts), maize and
vegetables.

Table 7.2 Agricultural production in Mali (Thousands of Tons)


Rice,
Year Groundnuts Millet paddy Sorghum Maize
2005 23,426 44,875 41,248 27,511 16339
2006 23,138 47,588 39,186 32,707 16396
2007 23,170 48,464 48,391 29,591 13160
Source: FAO Stats (2009)

60,000

50,000

40,000

30,000

20,000

10,000

-
2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Groundnuts, with shell Sorghum
Millet Rice, paddy
Maize

Figure 7.2 Evolution of selected agricultural products in Mali

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Rice production is concentrated in the Office du Niger (ON) Zone with the rest of the
production is done in rain feed fields and draught resistant rice varieties such “Nerica”
(Nouveau Riz pour l’Afrique) in the southern regions of Mali (Kayes, Koulikoro et Sikasso)
with a pluviometry above 900mm per year. Mali exports rice to Burkina Faso, Mauritania and
Nigeria and has made some progress in recapturing the regional market from imported
Asian rice3 (Coulibaly et al, 2009).

7.5 Predominant land characteristics

Mali depends on small family exploitation (68% of farmers cultivate less than 5ha) (Samake
et al, 2009). Out of a total area of approximately 124 million of hectares, Mali has 5.5 million
hectares of forest, 43.7 million of hectares of land suitable for the agriculture and livestock
production and 74.8 million of hectares of desert. Mali has an estimated potential of 2.2
million hectares of land suitable for irrigation, out of which 960,000 hectares are attributed to
the Office du Niger (ON). Mali’s agricultural sector is thwarted by numerous constraints
relative notably to: a) its physical and institutional environment characterised by: (i) a deficit
in rainfall, drought and irregular water levels; (ii) repeated locust outbreaks and invasion by
floating plants ; (iii) insufficient water control and non-mastery of the technical conditions of
production, attested by a low level of productivity and agricultural wages ; and b) issues
relative to land security, factor costs and financing. Land composition and productivity vary
from north to south following a rainfall gradient and according to soil quality and their
topographical position.

Land not occupied by crops is generally considered as having a sylvopastoral use. Pastures
under these conditions cover about 49 million hectares. Their composition and productivity
vary from north to south following a rainfall gradient and according to soil quality and their
topographical position.

7.6 Characteristics of livelihoods

It is estimated that a fourth of the households in Mali are in a chronic situation of food
insecurity with cereal consumption representing around 50% of household expenses
(UNDAF, 2009). Economic poverty4 according to official figures in 2006 was 47.4% (Mise,
2009).

The Malian land tenure is complex and characterised by the co-existence of customary and
modern land tenure laws. Land tenure is governed by the “Code domanial et foncier” of 2002
(Ordonnance, 2002). This law in principle recognises customary law but grants ownership of
land to the State, while individuals or groups of individuals only have the right of usufruct.
Land can be accessed in three ways: renting, allocation or grant. Each of these methods has
specific problems, mostly related to fulfilling commitments and complying with the agreed
development period.

Customary laws are oral, vague, variable, unpublished; and their co-existence with modern
law is still conflictual. Customary tenure is based on kinship, gerontocracy, seniority,
indigenousness and gender, to the disadvantage of women(Mali, Country Strategy Paper,
2005). Although women represent the majority of the agricultural work force less than 2% of
women have registered property rights (Foncier, 2009). Land conflicts which occur on a

3
Currently, 60 %of the demand for rice in West Africa is supplied by imports, mainly from Asia
4
Share of the population that consume less than the equivalent of 157,920 FCFA (240 EUR) per year, per person.

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permanent basis, are exacerbated by demographic growth, high urbanisation rate, recurrent
drought and poor land management practices.

7.7 Policies in place and link with the bioenergy sector

National level
The Poverty Reduction Strategy of the GoM (IMF, 2008), highlights 3 main strategic
orientations policies which the country intends to implement for 2007-2011 period. These
orientations are:
• Development of infrastructures and the productive sector;
• Pursuance and consolidation of structural reforms;
• Strengthening of the social sector (education, health, water access).

These 3 orientations are detailed in 13 priority areas, being the 3 first: (1) Food security and
rural development; (2) development of small and medium size enterprises; (3) protection and
sustainable management of natural resources.

Private sector
New investments in Mali are governed by the Mali’s Investment Code (Code, 2005). This
code encourages companies to settle investments in Mali, principally in the industry and
agro forestry and pastoral business. Importation taxes on materials and machinery and
other taxes such as the industrial and commercial benefits can be exonerated for periods
depending on the size of the investment. The code also encourages settlement in regions
with low industrialization, the consumption of local materials, the investment in research and
development and training of qualified personnel.

Agriculture and environment


In 2006 Mali adopted the Agriculture Orientation Law (Loi, 2006) with the objectives of
ensuring food security, promote sustainable agricultural production and enhance
environment protection through more involvement of local municipalities (decentralization)
and coherence with UOEMA regional legislation. Although this law is especially meant to
minimize impacts of risk and calamities on agricultural development, no specific subsidies
exist for environmental friendly enterprises. Further, there is little reliable information and
weak functioning of different parts of the government to include environmental aspects into
projects and programs evaluation and enforcement (Mise, ny).

The Malian government has launched important initiatives to increase rice5 (in 2008) and
maize (in 2009) output. However, despite a general increase of production, availability of
such products and price reduction to consumers have been produced, mainly to weak supply
chains and inefficient internal markets.

A state secretary has been created to develop and increase the productivity of the ON and
its institutional and management capacity. Water use, including irrigation and industrial use,
is governed by the Code of Water (Loi, 2002). The GoM foresees the development of a total
of 100,000 ha for 2012 of irrigated land, mostly at the ON (60,000 ha).

Energy
Mali has important energy needs as only 23% of Malian households have access to
electricity (58% in urban areas and 11.23% in rural areas). In 2006 a National Strategy on
Renewable Energy, promoted by Ministry of Energy and Water (MEE) in collaboration with
the ministries of Agriculture, Finance, Commerce and Environment, was set up to obtain a

5
Official estimations are the production of 1.6 million tons of rice for 2008-2009 and 2 millions tons of rice for 2009-2010.

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10% reduction in fossil fuel imports by 2014, a 15% reduction by 2019, and a 20% reduction
by 2024.

This energy policy is defined by 5 major objectives:


- to improve access to energy especially from renewable sources
- to rationalise the use of existing energy sources
- to make more efficient the use of existing natural resources to produce energy
- to promote the sustainable use of biomass resources through the conservation and
protection of forests
- to strengthen government capacity and streamline administrative procedures within the
energy sector

7.8 Biofuels industry/programmes development

Biofuels play a major role to achieve the objectives of the National Strategy on Renewable
Energy. These objectives have been synthesised in the National Strategy on Biofuels that
will be implemented in by the National Agency for the Development of Biofuels (ANADEB)
legally established on 5th June 20096. ANADEB will develop and then oversee a legal
framework to promote investments and development on biofuels.
Biofuel production programmes in Mali are centred in two crops: 1) small scale production of
Jatropha Curcas oil and biodiesel through groups of farmers and small private farms; 2)
industrial ethanol production as by-product of sugar production, from irrigated sugar cane
plantations on the Office du Niger (ON) zone. Other vegetable oils, such as cotton and
peanut oil, have a high demanded (and margins) in an unsatisfied local alimentary oil
market, which makes them unsuitable candidates for biofuel operations.

7.9 Crops used for biofuels

Jatropha Curcas
Mali has been at the centre of Jatropha oil as biofuel development in West Africa. Jatropha
was introduced in Mali with a role as live fence, territory demarcation and erosion protection
(Yossi et al, 2006).

Although it estimated that Mali has more than 20,000 km of Jatropha hedges (UNIDO, 2008)
they are geographically dispersed and with little or no maintenance. Hedges yields are
estimated between 1 and 2 kg per lineal meter. However, few seed collection is carried out
due to the virtual inexistence of formal Jatropha seeds markets and limited awareness of its
commercial value. Collected seeds are used locally for traditional soap manufacture, both
task mostly carried out by women. The main zones with Jatropha concentration are the
regions of Kayes, Koulikoro and Sikasso.

Several private ventures and NGO projects have been initiated over the past 5 years to
increase the intensity of Jatropha seed production and develop oil extraction to power
agricultural machinery and small-scale electrification. One private venture has also started to
produce biodiesel (fatty-acid methyl esthers) from Jatropha oil. These ventures and projects
are active in specific regions, collaborating with formal farmers associations or informal
village level organisations, such as the cotton production committees (developed by the
CMDT) and women groups. However, in all the cases, intense work has to be carried out to
offer extension services to farmers to improve their agroforestry techniques to produce
Jatropha. Outside the ON zone large extensions of private land developed with Jatropha by

6
ANADEB was crated with the law N° 09-006/P-RM agreed by the General Assembly (Parliament) on 04 march 2009 and
promulgated by the President on 05 June 2009.

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a single individual or company are not well documented and very unlikely due to the Malian
land tenure system. In the ON zone, various Jatropha ventures are in the process to start-up
with land allocated but Jatropha planting and development of infrastructure has yet to
materialise (see more in ANDEB’s registered projects).

Sugar cane
The development of sugar cane production in Mali has been important only since 1972
thanks to financial and technical cooperation with China in the ON zone. In 1996, the Malian
state sold its majority stake of Sukala SA to a state-owned Chinese company. Sugar
production in Mali is only 23% of that of its estimated 150,000 tons per year requirements.
Sukala SA who owns and exploits around 5000 ha of sugar cane in two plantation sites for
the primary production of sugar and ethanol for the alimentary and pharmaceutical
industries. In recent years the GoM has worked to ensure foreign investments to boost the
sugar production. At the end of 2009 two new large projects have been formalised to
produce sugar and ethanol in the ON: N-Sukala (NS) and the Markala Sugar Project (PSM).

It is necessary to note that the ethanol produced by Sukala SA and future ethanol production
of the N-Sukala and the Markala Sugar Project is ethanol with a purity of 95-96% (hydric
ethanol) used in the pharmaceutical and beverage industries. However, such ethanol quality
is not suitable as fuel additive as is not totally miscible in gasoline. Further treatment of the
ethanol has to be carried out to remove the water (normally referred as drying the ethanol)
for its use as fuel additive for internal combustion engines.

Other crops suitable for biofuels


Cotton
Cotton yields in Mali are approximately 1 ton per hectare, out of which 43% is fibre and the
rest is cottonseed. From 1 ton of cottonseed a total of 100 litres of cotton oil can be extracted
and the press cake is a very appreciated protein meal on animal feed husbandry (CIRAD,
2008). Tests on diesel engines running straight cotton oil have been carried out by the NGO
GERES in the Koutiala cercle of Mali and by CIRAD in Burkina Faso.

Cotton production in Mali is organised principally by the activities of CMDT and OHVN
mobilising thousands of small producers (average cotton exploitation is smaller than 3 ha).
Mali has seen a dramatic decline of cotton production in the past 3 years, which has been
detrimental to the local oilseed extraction industry. The 2008/09 harvest of 201,000 tons of
seed cotton and approximately 85,000 tons of fibre and 285,000 bales is the lowest
production level in over 20 years (Hanson, 2009). This situation has been translated to
deficits on the vegetable oil production for the alimentary market and protein meal for
livestock industry. Similar shortages of cottonseed in neighbouring Burkina Faso and Cote
d'Ivoire pose a grim picture to private oil extractors. As a result, alimentary grade palm oil
imports are expected to rise dramatically and animal feed products could become dearer.

The process of privatization of CMDT has significantly increased uncertainty in a sector that
was already mired in high debts, structural problems and decrease in yields. A weak dollar in
relation to the FCFA (the Franc CFA is pegged to the euro) and the global market situation
has exacerbated the situation in Mali. Lower prices (between 160 and 200 FCFA /kg paid for
the 2008/2009 harvest) and late payments are eroding the incentives for millions of smaller
producers to continue producing cotton. The Malian government has installed initiatives to
subsidize inputs7 although only a small amount of NPK fertilizer is currently available for
distribution and its benefits have not been yet evaluated.

The cotton industry is in the process of reorganisation through coordinated efforts of


international donors and by the eventual division of the CMDT in 4 regional companies

7
Cost of NPK fertilizer is around 12 500 FCFA per 50 kg

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(Matsumoto-Isadifar, 2008). Technology transfer agreements have been signed between


Institute of Rural Economy (IER) and the state-owned Brazilian company EMBRAPA
(Empresa Brasileira de Pesquisa Agropecuária) to improve cotton agricultural techniques
and the introduction of coloured cotton varieties.

Groundnuts (Peanuts)
Groundnuts are grown by a large majority of Malian farmers and as such, peanuts play an
important role in the economy and diet in Mali. Groundnut hulls are used as fuel, and the
burned ashes are used in local soap and lye production. Groundnut plants are important
forage during the dry season. Groundnuts are grown throughout most parts of the country,
although the major production regions are the west, southwest, and the centre of the
country. About 6 % of Mali’s arable land is under groundnuts cultivation. There are many
small groundnuts transformation units producing mainly paste. Modern paste transformation
is done by SOSIMAPA (Chinese capital) with a capacity of 1000 tonnes. Industrial groundnut
oil extraction is done by Huicoma (around 5000 tonnes in 2001) (Smake et al, 2009). This
share is likely to increase as the company seeks to offset the fall of production and the cost
increase of cost of cottonseed.

Sorghum and millet


Millet represents 40% (about 1.5 million hectares) and sorghum 21% (about 0.8 million
hectares) of the total Mali’s cereal production in 2008 that is almost entirely rainfed. Millet
and sorghum yields average only 0.66 and 0.89 tons per hectare, respectively (Toure et al,
2006). By comparison, rice yields average 1.7 tons per hectare, and maize about 1 ton per
hectare. IER has been testing sweet sorghum varieties for the production of sugar and
ethanol. However, these tests are only small scale.

Sunflower
Sunflower cultivation in Mali is not very well documented, but a USAID Mali report quotes an
expected production of 50,000 tons in 2008. The cultivation of sunflower is restricted to the
southern parts of Mali (Sikasso region) and for the alimentary oil production market.

7.10 Implications of conversion of Biofuel raw material

Land tenure
A recent review of four small Jatropha producers projects and ventures (Mali Folkecentre’s
Garalo project, Mali Biocarburant SA, the Jatropha Mali Initiative, and GERES) showed that
the impacts of these programmes on land tenure and food security, are inexistent, albeit in
the medium term (Palliere and Fauveaud, 2009). In all these initiatives, land ownership
remains with small Jatropha farmers who normally produce less than 1 ha (many times on
intercropped fashion). However, Jatropha adoption is slow due to the land delimiting
character of Jatropha (internal land claims need to be solved before planting and limit the
number of adopters) and extension services need to be offered, which translates into higher
costs for these projects. Land tenure in the ON for biofuel production is through long term
land concessions or holdings, which many times include the development of land for
irrigation.

Water use
Mali Biocarburant SA has identified water access as one of the main barriers for Jatropha
adoption, as it produces overlapping of agricultural calendars between Jatropha and cash
crops. However, after cultivation, water use for Jatropha fields outside the ON is likely to
negligible impact as few or no irrigation would be implemented.
Farmers in the ON region have large family-based plots cultivating in a low-risk environment
as part of a commercial strategy. They produce two crops a year, with rice only in the main

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season and a mix of rice and shallots or onions in the counter season. The main problem for
family farmers in the ON is a high water loss and inadequate drainage. Channel irrigation
maintenance in the ON is carried out by 3 layers of responsibility, with the State in charge of
the principal channels, the ON of secondary channels and private farmers of tertiary
channels that irrigate their fields. However, a recent evaluation of the maintenance
objectives found that none of the parties respects their contractual commitments (31% by
farmers, 45% by the ON and 70% by the State) (Office du Niger, 2007). Further conflicts with
water allocation can exist when the water requirements by the new large projects at the ON
start to become operational in the following 2 to 3 years, especially during the counter
season.

Employment
Jatropha based projects produce direct employment through extension services and oil
extraction. Mali Biocarburant SA, for example, has around 50 salaried personnel for its
operations. Indirect employment, through seed production, collection and commercialization
has great potential to generate real sources of income. Most of the players in the Jatropha
sector in Mali agree that a price of 50 FCFA per kg (0.08 EUR/kg) of Jatropha seed is
necessary to make competitive straight vegetable oil extraction and biodiesel production in
relation to Diesel costs8. Comparative studies value the Jatropha production costs for small
farmers between 18 and 42 FCFA, hence producing real benefits to farmers(Latapie, 2007).
One of the key elements of the projects at the ON is that local farmers will be hired as
seasonal workers. The Malian law guaranties a minimum professional salary close 28 460
FCFA (43.4 EUR) per month9. However, an informal labour market for non-skilled and
seasonal workers is likely to pay less than this.

Market
The demand for Jatropha grains greatly surpasses the supply. As mentioned before, the
Jatropha seed market is virtually inexistent outside the areas of the different project
interventions, where most of the seeds are used to sustain planting campaigns and local
soap production. Due to this weakness, it has been reported that informal buyers trade
seeds up to 10 times more expensive the price the buy with local farmers (usually less than
50 FCFA per kg). In order to meet its fossil fuel reduction targets, the Ministry of Energy
estimates that 75,000 ha of Jatropha need to be planted, which would displace 84 million
liters of Diesel (Klarsfield at al, 2009). Mali Biocarburant, has started biodiesel production on
its 2000 litres per day facility since the summer 2009, albeit supplemented with imported
palm oil from Ivory Coast. The actual Sukala ethanol production is 2.3 million litres of
ethanol pear year. However, none of this ethanol production is used as fuel.

End use
As mentioned before, most Jatropha projects are intended for local production of energy and
local consumption of biodiesel. At least 3 factors promote this type of use: 1) the costly and
logistically difficult exportation of goods from Mali (land-locked country), 2) projected internal
growth and energy needs superior to fuel production, 3) Strong euro value which makes the
exportation, if possible, unattractive outside the ECOWAS region. The actual ethanol
production is consumed in Mali and Burkina Faso for the pharmaceutical and beverage
industry. The biodiesel produced by Mali Biocarburant is mainly sold locally to private users
and Grands Moulins du Mali (Flower mill). Mali Biocarburant also supplies straight Jatropha
oil to a pilot programme of 10 Multifunctional Platforms (MFP) in collaboration with the
National Multifunctional Platform Programme

8
For comparison the official cost of 1L of Diesel on January 2010 was 555 FCFA (8.84 EUR). In average, around 4kg of
Jatropha seed are needed to produce 1L of oil.
9
Information from the Agency for the Promotion of the Investments in Mali (API)

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7.11 Mapping of the institutions:

First hand players


The first hand player for the production of biofuel in Mali is he new National Agency for the
Development of Biofuels (ANADEB), once a new biofuel law is approved by Mali’s General
Assembly (possibly late may 2010).
ANADEB
The ANADEB is attached to the Ministry of Energy and created with the following objectives:

- To establish a centralized and harmonized framework for biofuel promotion;


- To increase the number of professionals working in the biofuels field;
- To enact production licensing requirements and technical quality standards for biofuels;
- To create a dialogue between main public and private actors in the field;
- To maintain trade between international partners in biofuels;

ANADEB efforts for the time being are focused on the development of 2 principal feedstock
sources: Jatropha and sugarcane.

A draft of the legal framework for biofuel production is in consultation with other parts of the
government and ANADEB. It is expected that the National Assembly pass it during the
spring 2010. Some of the main characteristics of the draft pursued by ANADEB are:

- Tax free importation for biofuel producing equipment (presses, reactors, etc). However,
importation taxes at UEMOA level would apply.
- Comply with the investment code (ministry of economy and finance). Tax breaks for up to 5
years will be encouraged inside the new introduced in the strategy of renewable energies
allowed to private investors.
- Promote the production of biomass for the co-generation of electricity
- Establishment of quotas (to be defined) of biofuels produced in Mali for national
consumption.
- Quality control in line with European and American standards
- The creation of a laboratory for testing of biofuels

ANADEB is carrying out public awareness campaigns with the conversion of agricultural
machinery to use straight Jatropha oil and collaboration with other parts of the government,
NGOs and private sector.

Office de Niger (ON)


The Office du Niger zone (ON) is one of the oldest and largest gravity-fed irrigation areas in
sub-Saharan Africa. The ON is a State owned establishment with industrial and commercial
character that comprises the area between the river Niger and Bani, in the circles of Segu
and Niono10, in the Segu region of Mali. This zone alone accounts for half of the Mali’s rice
production11. Historically, the ON has been considered as a ‘state within the state’ in
reference to specific economic, political and social organisations that exists there (al AOE,
2007) . A long story of reforms have transformed the ON from a closed state-run company to
a more open to the private sector. Indeed, the ON has withdrawn itself from all crop
harvesting and marketing functions but remains the critical actor for water access and

10
Latitudes (13°54’29’’N to 13°40’58’’N) and longitudes (6°4’13’’W – 5°50’7’’W)
11
The Segou region, which includes both the ON lands and the adjacent smaller Office Riz Segou (ORS), has a central role in
the production of rice supplying 87% of the total rice available for trade outside the region of production after local consumption
needs are met.

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fertilizer supply, albeit there has been a formal transfer of such responsibility to farmer
organisations. International cooperation, notably French and Dutch, have pledged for the
continuation and improvement of household farming and the production intensification
supported by technical improvements.

Relations between the ON and many farmers and farmer organizations in its zone of
intervention are generally poor. The ON is responsible for the allocation of irrigated parcels
to users in the zone. However, final land ownership rests with the State and the ON
functions as its agent. With a special derogation from this principle, farmers in the MCA
Alatona project zone will be able to obtain actual land titles. Most ON land is held by family
farms under 2 types of arrangements: 1) annually renewable farming leases that are not
transmittable and 2) “farming permits” that are transmittable12. These types of land holdings
can be, and are commonly revoked, by the ON if farmers fail to pay an annual water use fee
meant to finance ON-contracted work to maintain irrigation infrastructure. Water use fee
payment is usually above 95 percent because ON evicts farm families with revoked permits.
Accusations of non-transparency for the attribution of new parcels are common as the
demand for such attributions outstrip the supply ON can offer.

Especially since 2002, other types of lease holdings exist to attract private investors who will
construct new irrigation channels in return for long term (50 or 30 years) occupation rights
granted as a reward for investment. One of the most high profile case under this scheme is
the allocation of 100,000 hectares in the cercle of west Macina to Malibya Agriculture, a
state owned company from Libya, for the production of rice, livestock farming and industry.
Under this agreement a 40km supply channel with a capacity of 130 cubic meters per
second will be developed.

Multilateral
UEMOA
The West Africa Economic and Monetary Union (UEMOA) is a regional organization seeking
the economic integration of the state members. The UEMOA members (Benin, Burkina
Faso, Côte d’Ivoire, Mali, Niger, Senegal, Togo and Guinea-Bissau) share the same
currency, the Franc CFA, whose exchange rate is tied to that of the euro and is guaranteed
by the French Treasury. The UEMOA promotes greater competitiveness of the economic
activities with the framework of open markets and juridical environment rationalized and
homogenised.

European Commission (EC)


Under the programmes for environment and rural development, the EC supports the
activities at the ON with the development and integration of information systems (Vision
project).

The UN system (UN)


The United Nations (UN) system in Mali, through UNDP (United Nations Development
Programme) and UNEP (United Nations Environment Programme), have introduced
programmes to help the GoM to tackle environmental issues and their link to poverty. These
activities have had a major role in the development of the national strategy for renewable
energy and support programmes, such as the Multifunctional Platform Programme and
AMADER, to enable sustainable energy access in rural communities.

Bilateral
United Sates of America (US)
Through the United States Agency for International Development (USAID) in Mali and the
Millennium Challenge Account (MCA) a 234.6 million USD irrigation project (Alatona

12
Farmers with a history of maintaining annual leases are generally able to transform these into farming permits

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irrigation project) has started at the ON (MCMali, 2009). This project consists on the
redevelopment of 14,000 ha of agricultural land for increased productivity and production,
through diversification of high-value crops such as sugar cane. The programme will upgrade
81km of roads (Niono-Goma Coura), support the ON water management, allocated new
irrigated land to family farmers, women market gardeners, and farming companies in private
ownership. Recipients will purchase the land by making annual payments over a 15-20 year
period. The project will follow the process of parcel creation, land rights education,
registration system upgrade, land parcel allocation and titling, and management of land
revenues and will compensate families residing in the perimeter or with rights to land therein
consistent with World Bank’s Operational Policy on Involuntary Resettlement by offering land
in the irrigation perimeter or, if the land option is not chosen, other compensation
alternatives. Social infrastructure, agricultural services and lending facilities are also part of
the programme.
The redevelopment of the first 5200 ha started in July 2009 and will be completed in 20
months by the French company Sogea Satom-Razel. Another component of the project is
the rehabilitation of the main irrigation channels and regulators by the Chinese company
Synohydro Corporation Limited, which would increase the water delivery from 180 to 300
cubic meters per second.

China (CN)
China has become a leading trading partner with Mali with the involvement on more than 80
projects, including sugar, textiles, pharmaceutics, the, cigars and matches, rice dehulling
equipment and sponsor of important infrastructure projects such a 3rd bridge in Bamako and
the construction of the University of Mali infrastructure. State owned Chinese companies are
active as contractors for infrastructure projects, notably in hydraulic and road works.

Denmark (DK)
The kingdom of Denmark is a technical and financial sponsor of ANADEB. Historically, the
Danish cooperation has been very active in the areas of renewable energy and environment
with funding to the NGO sector such as Mali Folkecentre.

France (FR)
The French Development Agency (AFD) has supported various initiatives in the ON for many
years and is one of its lead donor. It currently carries out the project PADON which supports
the ON on water administration and land redevelopment and supports producers via the
regional agricultural chambers. The proposed expansion of the main channel systems will
complement a planned AFD project to strengthen certain sections in the area.

Netherlands (NL)
The international cooperation from kingdom of the Netherlands has historically been very
active in the agricultural sector and worked closely with the ON for the last 30 years. The
Dutch cooperation has committed 3.1 billion FCFA for the "Programme d’appui au contrat
Plan Office du Niger 2008-2012” that tries to strengthen the capacity of the ON through
feasibility studies for redevelopment of irrigated land and extension work.

Government of Mali (GoM)


Prime Minister Office
Secretary of State in charge of the Integral Development of the Zone Office du Niger
(SEDIZON)
The SEDIZON, created in April 2009, has as mission to transform the ON into an economic,
social and cultural development driver for Mali13. The direct attachment of SEDIZON to the
Prime Minister Office and the large investments on sugar and food production materialized

13
Before the creation of the SEDIZON, the Ministry of Agriculture had the guardianship of the ON.

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during 2009 show the political will that the GoM has to attract important foreign investment in
the agricultural business.

Ministry of Energy and Water (MEE)


National directorate of energy (DNE)
The DNA is in charge to administrate policy related to energy supply. The main objectives of
the NDE are:
- To ensure that the greater number of the population has access to energy both in quantity
and at low cost;
- To develop the national potential of renewable energy;
- To protect and preserve the existing wood fuel resources;
- To liberalize the sector by mobilizing more initiatives of the decentralized communities and
private funds;
- To adapt institutions to the energy sector requirements through oriented capacities
building, and the State strategic control.

CENESOLER
CENESOLER is the National Research Centre on Solar and Renewable Energies of Mali
CENESOLER has a large experience in biofuels, especially with Jatropha, since the late
80’s when it hosted and collaborated with various Jatropha initiatives including GTZ’s
Jatropha project and the former National Program for the Energetic Valorisation of Jatropha.
The activities related to Jatropha are now under the supervision of ANADEB14. The
CENESOLER is trying to become a regional centre for biofuels that could supply technical
services with support of the UEOMA.

AMADER
Created in 2003, AMADER is the Malian Agency for the Development of Domestic Energy
and Rural Electrification. It is a Public Administrative Establishment (EPA) set up as part of a
World Bank/GEF/GoM project to support rural energy development. AMADER main activities
are to promote private and non-profit sector ability to develop and operate viable
electrification projects in rural and suburban areas through technical assistance and financial
support (investment subsidies). AMADER also acts as de facto energy regulator in rural and
suburban areas. Fuel costs in rural settings and the low level of constant payment
subscribers are one of the recurrent problems for the profitability of many of the AMADER
projects.

EDM SA
Electricité du Mali SA is the national electricity company in charge of production,
transportation and distribution of electricity in the district of Bamako and the principal urban
areas of Mali. Mali’s share of electricity production from thermal stations has increased from
23% in 2006 to around 45% in 2007 supported entirely by importation of fossil fuels (Diarra,
2009). The rest of the electricity production is produced through hydroelectric generation.

Ministry of Mines (MM)


The Ministry of Mines is in charge of managing policies for the exploitation of mineral
resources in Mali, being the most notable gold, diamonds, phosphate and uranium.

National Direction of Geology and Mines (DNGM)


The National Direction of Geology and Mines is in charge of produce the policy documents
related to research, development, exploitation and transformation of the mineral resources.
The DNGM has a division for hydrocarbons and facilities for testing of minerals. Initial work
with ANADEB is foreseen to help to draft national standards in terms of biofuel quality
requirements.

14
The actual director of ANADEB is the former director of CENESOLER

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Ministry of the Industry, the Investments and Commerce (MIIC)


API
The Agency for the promotion of the investments (API) has been recently created to
collaborate assist different investment in Mali. It also offers a ‘one-stop’ window to register
companies under the Malian Law.

Ministry of Economy and Finance (MEF)


ONAP
The National Office of Petrol Products (ONAP) is a EPA organization with moral and
financial autonomy. ONAP seeks to ensure the availability of oil products in Mali, contribute
to the definition of pricing policies and national stocks, fight against fraud in the oil
subproducts sector and collect, organise and disseminate statistical and research
information about the oil sector. Other attributes to ONAP are the definition of norms and
control quality of oil based products in Mali.

Ministry of promotion of Women, Child and Family (MPFEF)


The MPFEF has under its guidance the Multifunctional Platform Program (PTFM) that has
been a mayor player in the development of Jatropha oil as fuel in Mali.

Multifunctional Platform Program (PTFM)


The concept of a Multifunctional Platform was developed in Mali and is now a UNDP
regional programme (Senegal, Ghana, Burkina Faso, Ghana, Mali). It consists of a small
stationary diesel engine powering different productive modules (cereal thresher, cereal mill,
water pump, battery charger, electricity generator). A PTFM is managed and owned by
women groups that benefit from important time reductions of agro processing activities. The
program has important impacts such as local employment, health improvement through
better diet and increased school attendance of young girls. The PTFM programme traces its
roots to the German Technical Cooperation (GTZ) in Mali during the late 80’s where
pioneering work was carried out to use Jatropha oil as fuel for its engines. PTFM programme
has installed around of 600 platforms in Mali and has the commitment to install another 300
in a 3-year period. Since October 2008 the PTFM program collaborates with MBSA for the
set-up of 10 PTFM running on Jatropha oil through the intensification of Jatropha cultivation
in those villages. The PTFM programme also works closely with AMADER to develop rural
electrification programs where successful PTFMs are upgraded to small electricity suppliers.

Ministry of Environment and Sanitation (MES)


Agency for the basin of the Niger River (ABFN)
The mission of ABFN is the protection, promotion and sustainable management of the Niger
river and prevention of natural risks (flooding, erosion and draughts).

Ministry of Agriculture (MA)


Institute of Rural Economy (IER)
Mali’s Institute of Rural Economy is a research organisation with technical expertise on
agronomy, livestock, forestry, fisheries and systems of rural production and agricultural land
development. The IER is active in the transfer of technologies and research staff training
(including demonstration fields, seeds improvements) through 6 research centres, 8 stations
and 12 sub-stations in the Malian Territory. The IER is carrying out tests with sweet sorghum
for production of sugar and methanol.

CMDT
The Malian Company for the Development of Textiles (CMDT) was founded 1974 by the
Malian state to administrate the national cotton production. CMDT is finalising a long
privatisation process and remains the biggest supplier of inputs for cotton crops (such as
NPK, seeds) and market price for cotton. The capital of the company belongs to the Malian

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state (60%) and to the French organization DAGRIS (Développement des Agro-Industries du
Sud)15.

The CMDT intervenes principally in the regions south of the Niger river (Cercle of Dioila in
the Koulikoro region, circles of Baroueli, Bla and San in the Segu region and the entire
Sikasso region) and the East of Mali (cercle of Kita). This zone comprises around 28% of the
national population of Mali. The cotton cultivation is carried out during the rainy season of
May to beginning of October. The CMDT is the principal player for ginning (separation of
seed from fibre) the cotton. Cottonseeds are then sold to private oils extractors, such as
Huicoma. Local transformation of cotton fibre into textile products is carried out by
COMATEX and FITINA16. However, this accounts only about 1% of the fibre production.
The CMDT works closely with the producers, through a large network or village agents and
farmers organised cooperatives. Village agents and cooperatives participate in the
acquisition of fertiliser and pesticides needed for the cotton production. They also set prices
before the season, manage credit to farmers and organise the transport of the harvest.

OHVN
The Office of the High Valley of the Niger (OHVN) develops the cultivation of cotton and
other agricultural products in the circles of Kati, Koulikoro and Kangaba. OHNV is the
second producer and trader of cotton in Mali. However, OHVN is not involved in any
transformation process, leaving it to the CMDT.

Ministry of Secondary and Higher Education and Scientific Research (MESSRS)


This ministry manages and orients higher education of the University of Mali. Within the
University of Mali, two high education schools produce activities related to biofuels: IPR
/IFRA and ENI.

The National School of Engineers (ENI)


ENI is active in the promotion and testing of vegetable oils as alternative fuels. It
collaborates with ANADEB in the realisation of comparative tests of engines using Diesel
and Jatropha oil.

IPR/IFRA
The Polytechnic Institute of Rural of Training and Applied Research17 (IPR/IFRA) focus its
work on research and teaching of agronomy and animal husbandry. Located in Katibougou,
region of Koulikoro, this centre is active in agronomic research on Jatropha curcas and local
oil extraction.

Non-governmental sector (NGO)


The NGO sector involved in the production of biofuels is concentrated on Jatropha
production.
African Association for the Promotion of Biofuels (AAPB)
The AAPB is an umbrella organization integrating biofuel producers. Although it’s main office
is in Ouagadougou, Burkina Faso it has a representation office in Bamako, Mali.
AEDR-Teriyabougou
Teriyabogou18 is a sustainable tourism initiative and local development in the shores of the
River Bani in the commune of Korodougou, cercle de Bla in the region of Segou. The project
has planted 230ha in collaboration with neighbouring villages. Teriyabogou counts with a

15
Former Compagnie Française pour le Développement des Textiles (CFDT)
16
ITEMA (Industrie Textile du Mali) is another cotton fibre transformation company that is in the process to re-start activities.
17
http://www.ipr-ifra.org/
18
Teriyabogou (Association Mali Aqua Viva) was started by the late priest Barnard Verspieren, who carried out some of Mali’s
most important campaigns for providing drinking to rural populations.

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Jatropha oil extraction facility and intents to supplement its diesel consumption with Jatropha
oil.
GERES
Groupe Energies Renouvelables, Environnement et Solidarités (GERES) is a French NGO
working in Koutiala, region of Sikasso. GERES has planted around half a million Jatropha
shrubs for research of production, transformation and consumption within a very delimited
area of straight Jatropha oil. GERES works with a private rural electrification
concessionaries to evaluate the economic viability of Jatropha oil produced locally.
MFC Nyetaa,
Mali-Folkecenter Nyetaa (MFC) is a Malian NGO founded in 1998 with roots linked to the
Danish Folkecenter for Renewable Energy. MFC is very active in development of local use
of straight Jatropha oil and has assisted in the transformation of multifunctional platforms on
Jatropha oil and for the construction of oil presses in Mali. Its flagship project, Garalo Bagani
Yelen, is a rural electrification venture of different partners such as ACCESS S.A.R.L. (a
Malian rural energy service company), AMADER, FACT Foundation, the Stichting Het
Groene Woudt and Stichting DOEN funds. Located in the village of Garalo, region of Sikaso,
the Garalo Bagani Yelen project has planted 480 ha of intercropped Jatropha, installed a
Jatropha pressing facility and 3 generators of 100kW serving around 230 clients
(households, small business and government buildings). Plans are underway to replicate this
model in other villages and expand the Jatropha plantation.

Private Sector
Sugar cane
Sukala
In 1996, the China Light Industrial Corporation for Foreign Economic and Technical Co-
operation (CLETC) bought the majority stake (70%) of the state company Sukala SA (Forum
on China, 2006) and has assure its independent management. Sukala SA produces ethanol
in their installations of Dougabougou and Siribala, in the Segu region. Sugar production is
around 35,000 tonnes per year, and between 8,000 and 10,000 tonnes of molasses per year
(UNIDO, 2008). Around half these molasses are used to produce around 2.3 million litres of
ethanol by distillation per year. The remainder of the molasses are important inputs for
animal feed production. The ethanol produced is sold to the pharmaceutical, food and
beverage industries in Mali and Burkina Faso.

N-Sukala
On 13th November 2009, Mali’s National Assembly (Parliament) approved the creation of a
new company denominated N-Sukala (Nouveau complexe sucrier du Kala supérieur), where
the Malian State is shareholder (40%) together CLETC (60%). The share of the Malian state
is composed by the cession of 857ha for the construction of a sugar factory, the leasehold of
19,143 ha for sugar cane cultivation and capital contribution of 5.262 billion FCFA (8.022
million EUR) payable with a delay of 3 years after the legal registration of the company
(Lam, 2009). The estimated capacity production of this project will be around 103 680 tonnes
of sugar and 9.6 million litres of ethanol per year. The generation of 639 permanent and
10,000 seasonal jobs are expected with this project.

PSM
A third project is the Markala Sugar Project (PSM) is a public private partnership installed in
the ON. It consists on the irrigation of 14,000 ha of sugar cane plantations and the
construction of a factory producing 190,000 tons of sugar per year. The project is composed
of the following partners:

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a) SoSuMar: the Markala Sugar Company (Société Sucrière de Markala), responsible for the
industrial and private component of the Project, whose shareholders are: ILLOVO19 : 70% ;
Schaffer : 4% ; Private Malians: 22% ; the GoM: 4% , and
b) CaneCo: the Sugarcane Production Company (Société de production de canne à sucre),
responsible for the agricultural aspect. The State of Mali is the majority shareholder of
CaneCo with 90% of the shares (while SoSuMar holds the remaining 10%). CaneCo is the
State-owned component of the project. A third entity, known as “CommCo” will be
established to benefit the community. It will be responsible for developing 5,600 hectares for
the exclusive benefit of the specific communities to which they will be allotted. These 5,600
hectares will all be allocated to the communities as compensation (1,465 ha) and for their
development through the introduction of sugarcane cultivation (4,135 ha). This component
will enable peasant farmers to become sugarcane farmers. The establishment of this entity
will make a three-pronged partnership structure: GoM/SoSuMar /Community.

SoSuMar will have installations to produce 460,000 tons of bagasse, which will be used for
co-generation of 30MW electricity, including 3 MW that will be transferred to EDMs network.
Around 60,000 tons of molasses will be produced for the creation of 15 millions of liters of
ethanol. It is also estimated that the project will generate 95,886 tons of compost per year.
The project has yet to raise significant money to finance the start-up of operations20.

Cotton
HUICOMA
The Cotton Oil Factory of Mali (Huicoma) is the largest cotton oil factory in West Africa with a
capacity of over 340,000 tonnes of seeds per year. Huicoma was founded in 1979 by the
state owned CMDT that ensured its management until 1998 when a new autonomous
management was appointed. In December 2002, the Malian group Tomota bought a majority
share of the company (Tomota, 2009). The Malian state retains 12% of the company.
Huicoma owns three production factories (Koulikoro, Kita and Koutiala) with an annual
production capacity to produce of over 40,000 tonnes of refined cotton oil; 15,000 tonnes of
soap and over 230,000 tonnes of meal cake. At full capacity, Huicoma employs 855 people
in full time and 300 seasonal cookers. However, in the last 2 years Huicoma has struggle to
continue normal operations due to elevated price and unavailability of cotton seed, forcing to
substantial workforce reduction and technical stops of their factories (Privatisation, 2008).

Jatropha
Jatropha Mali Initiative (Eco-Carbone)
The Jatropha Mali Initiative (JMI) is a private venture composed of three shareholders: Eco-
Carbone (60%), Déguessi Vert, a Malian company, (21%) and Novartis (19%). The venture
plans to plant 12,000 ha around the cercle of Kita (West of Mali) for the production of straight
Jatropha oil. JMI has realised the plantation of 1200 ha of intercropped Jatropha and the
installation of a pressing pilot pressing unit.

Mali Biocarburant SA (MBSA)


Mali Biocarburant SA (MBSA) is a biodiesel producer established in 2007 with the integration
of private Malian and Dutch investors, including the Royal Tropical Institute (KIT), the Dutch
Railway Company Pension Fund, Power Pack Plus, Interagro and a Jatropha farmer’s union,
ULSPP. In February 2008 MBSA inaugurated a 2000 litres a day biodiesel refining unit in
the city of Koulikoro.

MBSA strategy is geared towards benefiting small producers of Jatropha Curcas through
innovative agro-forestry practices and business approach. MBSA does not own Jatropha
plantations but ensures its feedstock from farmers unions that benefit directly through the

19
http://www.illovo.co.za/
20
The MSP is having a meeting 8-9 December in Bamako for a round of meetings with potential financing institutions.

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sale of Jatropha nuts they harvest. The additional income for small producers is estimated at
1250 FCFA/day (€1.90/day) compared to current alternative sources of income of maximum
€1.15/day. MBSA is the first company in West Africa that has contracted its carbon reduction
on the Voluntary Carbon Credit market to Trees for Travel who in turn has signed a contract
with KIA Motors Netherlands. MBSA promotes a pro-poor carbon offset scheme and
reinvested 75% of its 2007 carbon credit income in strengthening the capacities of its
farmers. MBSA also valorises subproducts like the glycerine and Jatropha press cake, used
in the cosmetic industry and as valuable fertilizer, respectively. MBSA currently gives direct
jobs to over 50 people and partners with over 3000 farmers in three zones of Mali (Koulikoro,
Kita and Ouelessembogou) and Burkina Faso (Leo region).

Sud Agro-industrie (SAi)


Sud Agro-Industrie is a Malian company working in the Sikasso region of Mali using
Jatropha plantations. The company has as ambition to develop 50,000 ha of Jatropha.

Bagani SA (BSA)
Bagani SA is a trader of Jatropha seeds based in the region of Sikaso. Bagani SA counts
with a network of traders that obtain their supply from existing Jatropha hedges and plans to
enter into the development of Jatropha cultivation and oil production.

Tomota Group (TG)


The Tomota group, principal shareholder of HUICOMA, also intends to produce Jatropha at
large scale in the Mecina cercle, inside of the ON. An amount of 100 000 Ha are projected
for this development.

7.12 Links in biofuels development in Mali

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Acronyms
MA Ministre de l'Agriculture
IER Institute d’Economie Rurale
MIIC Ministre de l'Industrie, des Investissements et du Commerce
MEE Ministre de l'Energie et de l'Eau (MEE)
DNE Direction National d’Energie
CENESOLER Centre National des Energies Solaires et Renouvables
AMADER Agence Malienne pour le Développement de l'Energie
Domestique et l'Electrification Rurale
PJ Jatropha Project
EDM Electricité du Mali SA
ANADEB Agence National de Développement des Biocarburants
MET Ministre de l'Equipement et des Transports
MAT Ministere de la Administration Territoriale
DNCT Direction National des Collectivités Territoriales
MEF Ministre de l'Economie et des Finances
ONAP Office National des Produits Pétroliers

MEA Ministre de l'Environnement et de l'Assainissement


SEP-DIZON Secrétaire d’Etat auprès du Premier ministre, chargé du
Développement Intégré de la Zone Office du Niger

MPFEF Ministre de la Promotion de la Femme, de l'Enfant et de la Famille


MESRC Ministre des Enseignements Supérieur et de la Recherche
Scientifique
MMEIA Ministre des Maliens de l'Extérieur et de l'Intégration Africaine'
OdN Office du Niger
IPR Institute Polytechnique Rurale de Formation et de Recherche
Applique
International
BAD African Development Bank
UN United Nations
UNDP UN Development Programme
FAO UN Food and Agriculture Organization
GEF
EC European Comision, External Cooperation Programmes
UEOMA West African Economic and Monetary Unio
ECOWAS Economic Community Of West African States
Bilateral
FR France Agence Française de Développement (AFD)
NL The Netherlands cooperation
PRIVATE
Sugar cane
PSM Project Sucrier Markala
SUKALA Complexe Sucrier Du Kala Superieur SA
Et Ethanol
OdN Office du Niger
PP Private Producers
Cotton
CMDT Compagnie Malienne du Développement des Textiles
HC Huicoma SA
Jatropha
MBSA Mali Biocarburant SA
GERES Groupe Energies Renouvelables Environnement et Solidarités
BSA Bagani SA
MFC Mali Folke Centre Nyeeta

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GRAT
TY AEDR/Teriyabougou
EC Jatropha Mali Initiative Eco-carbone

7.13 Summary of biofuels activities implications in Mali

FARM INDUSTRY MARKET


Predominance of small and Jatropha for oil and biodiesel Direct sell of Jatropha oil,
marginal farmers Sugarcane for ethanol Biodiesel and Ethanol

Issues • Low land productivity and poor • Low availability of Jatropha and • Missing biofuel regulation
water access challenges Jatropha other oilseeds • High demand of fossil fuels
adoption • Sugarcane production for energy production
• Water management and dependant on irrigated land • Lower fossil fuel prices in
relations between small producers development at ON landlocked Mali than in the
and the ON • Actual production is for hydrous coastal neighboring countries
• Land tenure conflicts is ethanol after sugar production • Unsatisfied demand of
exacerbated with a young • Poor infrastructure and weak alimentary oil
decentralization process supply chains increase
• Inefficient agricultural markets production costs
Policies •Biofuel Policy highlights • Promotion of renewable in • Export of biofuel after
sustainable production and food country energy strategy national objectives are met
security • Promotion of investment and • Regional integration
• Development of irrigated land at improved operations at the ON • Biodiesel but not straight
the ON assisted by international donors oil mixing with diesel allowed

Emerging • Long term leaseholds for • Pro-poor strategies (outside • Local energy projects
Patterns/ agribusiness at the ON ON) and large industrial driving interests for Jatropha
relationships • R&D related to pro-poor developments (inside ON) • Sugar demand driving
benefits, environment and • Public Private Partnerships ethanol production
agronomic techniques • Regional approach
Impact/ • Increase in food output thanks to • Assured feedstock sources from • Substitution of fossil fuel
future development of irrigation farms and village level importation
implications potential production • Viability of rural energy
• Increase of income and • Synergies with the alimentary projects
diversification of rural economies oil extraction industry

7.14 Conclusion

Biofuels play an important role in the energy strategy and growth in Mali. Political support
favours food security, economic development and environmental protection. However, the
relative young government decentralisation process, lack of resources and low
administration capacities hinder good natural resources management.

Sugarcane production is intended to satisfy sugar demand. Ethanol is not yet used as fuel
but for the pharmaceutical and beverage industries.
In terms of natural resources, particularly water availability, Mali presents large
developments of irrigated land at the ON which can boost food and fuel production.

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Nevertheless, water and environmental management are main concerns in the country due
to the Sahel area.

Mali is one of the countries in West Africa with more experience on the use of biofuels for
electricity generation at community level. International donors follow with particular attention
these developments. The experience with Jatropha programs has shown that it can benefit
small holder farmers without compromising food production at local level. These
developments include commercial production of Jatropha (e.g. Mali Biocarburants) and not
only community level initiatives (e.g. Mali Folk Center).

Although Mali has a number of initiatives for pro-poor energy production, Jatropha seed
supply is still very limited.
The challenge for Mali is also in the agriculture sector, specially for the efficient use of water,
water access, costly extension services in need and low yields for all crops and not just
energy crops.

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8. TANZANIA CASE STUDY

8.1 Country’s Characteristics

Location
Tanzania is located in Eastern Africa between longitude 290 and 410 East, Latitude 10 and
120 South. It is situated in East Africa just south of the equator; mainland Tanzania lies
between the area of the great lakes—Victoria, Tanganyika, and Malawi (Nyasa)—and the
Indian Ocean. It contains a total area of 945,087 sq km (364,900 sq mi), including 59,050 sq
km (22,799 sq mi) of inland water. It is bounded on the North by Uganda and Kenya, on the
East by the Indian Ocean, on the South by Mozambique and Malawi, on the SW by Zambia,
and on the West by Zaire, Burundi, and Rwanda, with a total boundary length of 4,826 km
(2,999 mi), of which 1,424 km (885 mi) is coastline.

The section of the United Republic known as Zanzibar comprises the islands of Zanzibar
and Pemba and all islets within 19 km (12 mi) of their coasts, as well as uninhabited Latham
Island, 58 km (36 mi) south of Zanzibar Island. Zanzibar Island lies 35 km (22 mi) off the
coast, and Pemba Island is about 40 km (25 mi) to the NE. The former has an area of 1,657
sq km (640 sq mi), and the latter 984 sq km (380 sq mi). Tanzania's commercial capital city,
Dar es Salaam, is located on the Indian Ocean coast while Dodoma is the political capital
and seat of government. Dodoma is situated on the eastern edge of the southern highlands.

Figure 8.1 Map of Tanzania showing location relative to its neighbouring countries

Geographical Characteristics
Tanzania is the biggest of the East Africa countries (i.e. Kenya, Uganda, Tanzania, Rwanda
and Burundi). Tanzania contains three of Africa's best-known lakes - Victoria in the north,
Tanganyika in the west, and Nyasa (Malawi) in the south. Mount Kilimanjaro in the north,
19,340 ft (5,895 m), is the highest point in Africa. The island of Zanzibar is separated from
the mainland by a 22-mile channel.

The Great Rift Valley runs to the south of Tanzania splitting at Lake Nyasa; one branch runs
down beyond Lake Nyasa to Mozambique; and another branch to north-west alongside
Burundi, Rwanda, Tanzania and western part of Uganda. The valley is dotted with unique
lakes which include Lakes Rukwa, Tanganyika, Nyasa, Kitangiri, Eyasi and Manyara. The

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uplands include Kipengere, Udzungwa, Matogoro, Livingstone, and the Fipa plateau forming
the southern highlands. The Usambara, Pare, Meru, Kilimanjaro, the Ngorongoro Crater and
the Oldonyo Lengai, all form the northern highlands. From these highlands and the central
saucer plateau flow the drainage system to the Indian Ocean, Atlantic Ocean, Mediterranean
Sea and the inland drainage system.

Climate
Tanzania has a tropical type of climate. In the highlands, temperatures range between 100c
and 200c.during cold and hot seasons respectively. The rest of the country has temperatures
never falling lower than 200c. The hottest period spreads between November and February
(250c - 310c) while the coldest period occurs between May and August (150c - 200c).

Two rainfall regimes exist over Tanzania. One is unimodal (December - April) and the other
is bimodal (October -December and March - May). The former is experienced in southern,
south-west, central and western parts of the country, and the later is found to the north and
northern coast.

Administration
Tanzania is divided into 26 administrative regions (21 on the mainland and 5 in Zanzibar)
and 130 administrative districts (Zanzibar has 10 and Mainland has 120 administrative
districts).

Environmental Characteristics
Tanzania has extensive forest cover, most of which is savannah woodland and montane
forest, with scattered patches of lowland forest. Much of this forest has high biodiversity and
endemism—especially in the southern highlands region. However, these forests are
increasingly threatened by fuelwood collection by the rapidly expanding population, as well
as by commercial felling of timber and expanding agriculture. However, the country loses
91,000 hectares to illegal felling each year. In early 2006, the Tanzanian government
reinforced the export ban logs and sandalwood in an effort to reduce deforestation. The
country planted 100 million trees between 1999 and 2006. Although 40 percent of the
country is preserved in parks, forests cover is reducing rapidly in some regions. Overall
forest cover fell by 15 percent between 1990 and 2005, but deforestation rates have
increased significantly since 2000.
A recent survey (2009) among the ice fields on Mount Kilimanjaro found that the ice atop
Africa's most famous mountain could be gone in twenty years or less. The study discovered
that between 1912 and 2007, 85 percent of the ice that covered Mount Kilimanjaro vanished.
When using 2000 as baseline the mountain has lost 26 percent of its ice.
In Tanzania’s major towns and cities, solid and liquid wastes are left untreated. As a result,
air and water are contaminated with pollutants, a major health hazard especially for those
who live in low-income areas. In Dar es Salaam for example, few people are connected to a
sewage system. The few sewage systems that exist disgorge their waste directly into the
ocean, affecting marine habitats and species.
Wildlife poaching is also a problem in rural Tanzania. Sometimes, this happens in retaliation
to wildlife attacks which destroy crops, and hence livelihoods. Both poaching and human-
wildlife conflicts add to the country’s environmental concerns.
To make matters worse, Tanzania currently confronts issues of soil degradation,
deforestation, and desertification.

8.2 Population Size and Characteristics


Tanzania’s population as per 2009 estimates is 41,048,532 with a growth rate of 3.0%.
About 51% of the country’s population is women and 46% are under the age of 15. The birth
rate is 34.2 per 1000 while the infant mortality rate is 84 per 1000; under five mortality Rate

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is 133.8. Total life expectancy is 54 years (but varies between males and females, i.e. 53
and 56, respectively) and the population density per sq kilometre is 46.

According to Tanzania’s National Bureau of Statistics (2008), the country’s population trends
over the years can be summarized as shown in the table below:

Table 8.1 Population trend in Tanzania


1978 1988 2002 2008
Number of Inhabitants (’000)
Census Census Census Projection
Tanzania Mainland 17,036 22,584 33,462 39,475
Tanzania Zanzibar 476 641 982 1,193
Tanzania 17,512 23,225 34,444 40,668
Population Density (pop./sq. km) 20 26 39 46

8.3 Gross Domestic Product, Human Development Index and Poverty Levels
The Per Capital GDP is estimated at US$ 424. The share of GDP by main sectors is as
shown in the figure below.
Tanzania's Shares of GDP at 2008 Prices

industry &
construction
21%

services
agriculture & 52%
fishing
27%

Figure 8.2 Tanzania’s GDP

About 50% of the population is living below the poverty line. The United Nations
Development Programme’s (UNDP) Human Development Index (HDI) listing, which
arranges countries according to their overall level of human development, ranks Tanzania
151st out of a total of 174 nations. The HDI (0.530 for Tanzania) provides a composite
measure of three dimensions of human development: living a long and healthy life
(measured by life expectancy), being educated (measured by adult literacy and gross
enrolment in education) and having a decent standard of living (measured by purchasing
power parity, PPP, income).
Tanzania’s economy is highly dependent on natural resources which include:

Minerals - gold, diamonds, tanzanite and various other gemstones, natural gas, iron ore,
coal, spring water, phosphates, soda ash and salt.

Wildlife and Tourism - 12 National Parks, the Ngorongoro conservation Area, 13 Game
reserves, 38 Game Controlled Areas: National Cultural Heritage Sites (about 120 sites).

Fisheries - three large lakes: Victoria, Tanganyika and Nyasa, the Indian Ocean coastline,
rivers and wetlands. Potential yield of fish from natural waters is estimated to be 730,000
metric tons annually; present catch is 350,000 metric tons.

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Forestry and Beekeeping: Non-reserved forest-land (1,903.8 km2), forest/woodlands with


national parks etc (200 km2), and Gazetted forest reserves (1,251.7 km2).

8.4 Main food crops


A recent Agriculture Census showed that the crop sector plays an important role in the
Tanzania economy providing jobs, sustenance and income to 4,858,810 rural households
growing crops (representing 99% of the total number of farming households in the rural
areas and 95 percent of the total rural households). The total planted area with annual crops
was 7,818,620 hectares and 1,234,999 hectares for permanent crops giving a total planted
area of 9,053,619 hectares. There is a wide variety of crops grown in the country (over 95
types); however, small holder crop production is very much dominated by maize. Other
important food crops are cassava, bananas, paddy, beans and groundnuts. Maize is grown
extensively and in every region of the country. With the exception of seed, there is virtually
no investment in crop production. Crop yields are very low because minor amounts of
fertilizer are being applied and pesticide use is virtually absent especially on food crops. The
average planted area of 1.61 hectares per household for annual crops is low to support an
average size smallholder household and is insufficient to allow smallholders to move beyond
subsistence existence. The best crop producing areas in Tanzania have less available land
for cultivation.

8.5 Main Agricultural and Food Crops Imports/Exports


The main agricultural products including food and non-food crops are coffee, sisal, tea,
cotton, pyrethrum, cashew nuts, tobacco, cloves, corn, wheat, cassava (tapioca), bananas,
fruits, and vegetable. The table below shows the major agricultural crops marketed and their
production trends over the last five years:

Table 8.2 Major agricultural crops in Tanzania.


Production in ’000 Metric tons
Crop
2004 2005 2006 2007 2008
Sisal fibre 27 28 31 33 34
Coffee 39 34 46 55 44
Tobacco 44 57 51 51 55
Cashew nuts 80 90 88 91 98
Pyrethrum 1 3 2 2 1
Green tea leaves 1278 133 123 159 148
Seed cotton 140 378 131 131 201

The main agricultural exports include coffee, cotton, tea, sisal, cashew nuts, tobacco, cut
flowers, seaweed, cloves and horticultural products.

8.6 Characteristics of Livelihoods in Farming Systems


The majority of crop-growing households in Tanzania are subsistence farmers. Capital
investment in smallholder agriculture is virtually absent. Incomes are low, about 100 USD
per household annually. The average land area per house hold is only 2 hectares. The
percent of utilised land compared to available land is high and in some regions all available
land is utilised. Although the last ten years has seen an increase in planted land area, the
large increase in planted area has been offset by a reduction in productivity resulting in only
a comparatively small increase in the quantity produced. Land ownership through formal
titles/deeds is at a very low level with most of the land under customary rights.

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8.7 Policies in Place and Link with the Bioenergy Sector


The government of Tanzania has within her energy, agriculture, land environment and forest
policies, statements of intentions to improve the supply and demand of bioenergy and
ensure its sustainability. In 2006, the Government of Tanzania created the National Biofuels
Task Force to promote development of the sector and develop legislation to stimulate use of
biofuels. Furthermore, a statement on blending biofuels with mineral petrol has been slotted
in the New Petroleum Supply Act.
Agriculture Policy
For many years, Tanzania’s agricultural policies were based on government control of trade
and production. However, the sector has now been substantially liberalized and market
forces have been allowed to prevail. The government has withdrawn from direct
involvement in production, processing and marketing and has retained only its role in setting
policies. The overall agricultural policy of Tanzania recognizes the need to improve
agricultural Technologies and practices to enhance productivity. Therefore labour-
augmenting technology is a key to agricultural development.
Tanzania’s main agricultural policy objectives are:

• To ensure basic food security for the nation and increase nutritional standards.
• To improve standards of living in rural areas through increased income from Agriculture
and livestock.
• To increase foreign exchange earnings for the nation by increased production and
exportation of cash crops.
• To produce and supply raw materials required by the local Industries both from crops
and livestock.
• To develop and introduce new technologies to increase the productivity of labour and
land.
• To promote integrated and sustainable use and management of natural resources.
• To develop human resources within the sector in order to increase the productivity of
labour.
• To provide support services to agricultural sector.
• To promote specifically the access of women and youth to land, credit, education and
information.

Energy Policy
In Tanzania, bioenergy, and in particular traditional solid bioenergy i.e. woodfuels (charcoal
firewood), agro residues remains the dominant energy source for cooking in most rural and
urban households. These contribute more than 90% of the total energy consumed in
Tanzania. The National Energy Policy of the United Republic of Tanzania was adopted in
2003 and replaced the previous energy policy from 1992. The main elements of the Energy
Policy and strategy are to:

• Develop domestic energy resources which are shown to be least cost options.
• Promote economic energy pricing.
• Improve energy reliability and security and enhance energy efficiency. Encourage
commercialization and private sector participation.
• Reduce forest depletion.
• Develop human resources.

However, there is limited interface between energy policy and plans relating to national
economic planning.

Forest Policy

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The Forest policy (1998) Objective is to ensure sustainable supply of forest products and
services by maintaining sufficient forest area under effective management. It also aims to
enable participation of all stakeholders in forest management and conservation, through joint
forest management agreements, with appropriate user rights and benefits. Sustainable
bioenergy production can be achieved through sustainable forest management.

Land Policy
The Land policy of (1997) recognized the confusion and uncertainty regarding land tenure
and management authority over most land in Tanzania. The policy sought to dispel this
confusion by reiterating government of Tanzania general underlying right to land, but clearly
recognizing and clarifying customary and other use rights to land. This policy has major
implications on large scale bioenergy production. In Tanzania land belongs to Government
and a lease for specific period is given to person(s)/company/institution(s).

Environmental Policy and Environment Management Act


The Environmental policy of (1997) advocates for investment in Biomass development in
Tanzania. It recognizes that this is vital for environmental protection and poverty reduction.
The Environment Management Act (EMA) No. 20 of 2004, the part VI of the EMA deals with
Impact Assessment (EIA) and other Assessments, and directs that EIA is mandatory for all
development projects. Section 81 (2) states that “An environment Impact Assessment study
shall be carried prior to the commencement of financing of a project or undertaking”.

Other laws, relevant to bioenergy development include: The Water utilization (Control and
Regulation ) Act (1974) s amended in 1981; The town and country planning Ordinance Cap
378 of 1956 (as amended in 1961); Wildlife Conservation Act No. 12 of 1974 (as amended
in 1978 ); Protected places and areas Act (1969) and Local Government Act of 1982
(Urban and District Authorities).

8.8 Biofuels Industry/Programmes Development


Presently there are a few small-scale on going bioenergy projects aiming at improving the
supply and use of solid and liquid bioenergy in Tanzania, including:

Programme on Integrated Wood-fuel Services for Poverty Reduction in Tanzania


This programme is being implemented by Tanzania Traditional Energy Development and
Environment Organisation (TaTEDO0 with financial support from the EU and the HIVOs. It
will be implemented over a period of four years from January 2006. The objective of this
programme is to increase income of the rural and urban beneficiaries through reduced costs
and increased efficiency of wood –fuel stoves, ovens and charcoal production kiln. The
beneficiaries of this programme are households, social service centres, and small and
medium enterprises.

Program for Biomass Energy Conservation (PROBEC)


This is a SADC programme implemented by governments with some technical assistance
from GTZ. It is being implemented in eight SADC member countries namely Lesotho,
Malawi, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. In Tanzania
the programme implementation started in 2004 with the objective of improving access to
improved wood fuels stoves for households, institutions and productive sectors.
Liquid Bioenergy Initiatives
There exist several initiatives from the national to the local levels with the objective of
developing, policies, regulations and programme aiming at ensuring sustainable
development of liquid bioenergy in Tanzania. The government through a Biofuels Task Force
is working on the preparations of policies, regulations for creating enabling environment for
stakeholders to participate in the development of biofuels. Several actors (e.g.

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multinationals, companies, NGOs, institutions and small holders farmers) are implementing
projects aimed at increasing the supply of liquid biofuels in the country. More than ten
companies already are at different stages of establishing farms for biofuels farming.

8.9 Crops Used for Biofuels:

Type and Conversion Technology


Biofuel development in Tanzania is still at infancy stage. Current efforts are mostly focused
on biodiesel from jatropha. The jatropha oil can be used either as Straight Vegetable Oil
(SVO) or refined and blended with petro-diesel.

Potential Crops (Biofuel Feedstocks)


Tanzania has ideal geographic and climatic conditions for growing a wide range of biofuel
crops: sugar cane, sorghum, cassava, palm oil, jatropha, soy, cotton, pongamia,
croton and others. Experts agree that Government policy should focus on non-staple food
crops as a feedstock like Jatropha and pongamia in mitigating the direct impact of biofuel on
food security.

Market for raw material


Tanzania is a net fuel importer. Tanzania has therefore a high potential to become a
significant biofuel producer. The many initiatives started will create market opportunities.
Some investors have started biofuel production at least on the experimental stage. It is
reported that there is currently a dramatic increase in demand for biofuels, attracting the
interest of investors from within and outside of Tanzania. The trend shows that multinational
investors/companies are increasing their investments into the cultivation of crops for biofuels
production in the country. At the moment however, no commercial scale production or
processing has been reported. Currently there is no market information available. Biofuel
feedstocks are sold like other crops, and often without any deliberate intention to use them
for biofuel.

End use
There is potential to use biofuels at all levels (households, public facilities, transport and
industry including power generation).

Implications for land tenure, water and employment


Tanzania has over 88 million hectares of suitable agricultural land, of which less than 6% is
currently utilized. Unlike many alternative countries, the vast majority of land in Tanzania that
is available for cultivation is not virgin forest or environmentally sensitive. A recent study
(FAO, 2007) estimated Tanzania to have more than 30 million hectares of land suitable for
the cultivation of energy crops, whereby corresponding areas for sugarcane, cereals and
root crops are 570,000 ha, 24 million ha and 14 million ha respectively.

There are fears nevertheless that the sheer speed of biofuel expansion may generate new
pressures on land tenure arrangements, leading to alienation. There are also fears that poor
households may either sell or be forced to relocate as the rush to meet increasing demand
gathers momentum. Competition for inputs (e.g. land, water, fertilizers) and other factors that
might be diverted from food production might lead to a food crisis.

However, opportunities exist for income generation and diversification by producing and
selling biofuel feedstocks. Employment opportunities will be created through agro-
industrializations. This will lead to improved standard of living and linkages with others
sectors in the economy. Energy supply in rural areas will also stimulate rural development
and reduce pollution caused by fire wood. Reduced time spent by women and children on

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basic survival activities (gathering firewood, fetching water, cooking, etc.). The development
of biofuel as a source of energy, when grown on a large scale, could also represent a
paradigm shift in agricultural development.

8.10 Implications of Conversion of Raw Materials to Biofuels


Conversion of raw materials is still at an early stage but a number of actors and developers
are at various stages of developing/promoting biofuels. Examples include:

i. Sekab Biofuels (T) Ltd (Swedish)– to promote sugarcane based bioethanol


ii. Prokon of Germany – [Jatropha] - Mpanda – Rukwa;
iii. WILMA from USA [Croton spp.) [– Biharamulo, Kagera];
iv. Mitsubishi Corporation of Japan – Jatropha [Arusha and Dar es Salaam];
v. Farming for Energy Livelihood in Southern Africa (FELISA) [Oil palm - Kigoma];
vi. KAKUTE21 [jatropha] – Arusha;
vii. Diligent – Dutch Firm [jatropha Oil];
viii. TaTEDO of Tanzania [jatropha];
ix. SunBiofuels (T) of UK [jatropha - Kisarawe]

As such no significant impacts can be attributed to biofuels at the moment.

Implications for Water use


Three of the ten largest lakes in the world are found in Tanzania, and a large network of
rivers, making most areas of Tanzania suitable for irrigated agriculture. Tanzania has
significant potential for irrigated land and several areas apt for oil palm and jatropha have
already been identified.

Implications for Employment


As already stated, employment opportunities will be created through agro-industrializations.
Some have already been created as a result of the aforementioned biofuel initiatives and are
expected to increase as the sector grows.

8.11 Mapping of Policy and Institutions and Links with Bioenergy


The institutions involved in the development of biofuels in Tanzania include a variety of
Government ministries and other government institutions including Tanzania Investment
Centre (TIC), Attorney Generals chambers, (AGC), Tanzania Petroleum Development
Corporation (TPDC) and Community Finance Limited (CFC). There are several
Developmental organizations that are at the forefront of the development of biofuels, they
include, TaTEDO, Sugar Producers Association, Envirocare and several other locally based
NGOs and CBOs. Also there is increasing private sector participation from inside and
outside the country. Some of such companies include Felisa, Kakute, Sun Energy LTD,
Deligent, Wilma, Prokon, Bio-Alcohol Fuel foundation (BAFF), SEKAB.

First hand players


There is currently no coordination of biofuels policy within Tanzania, although the Tanzanian
Biofuels Task Force is in the process of drawing up policy guidelines. Investors are able to
receive necessary investment, land and environmental approvals to start plantations without
any concrete government policy. Foreign investment in Tanzanian biofuels is being

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KAKUTE – Kampuni ya Kusambaza Teknolojia Tanzania

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encouraged as it has the potential to aid rural development and local livelihoods, improve
energy security and reduce oil imports.

All enterprises, whatever their legal forms, operating in Tanzania must register with the
Business Registration and Licensing Agency (BRELA) of the Ministry of Industries and
Trade. The first step is to obtain name clearance from BRELA. The investor will then register
with the Tanzania Investment Centre (TIC) which assists foreign investors in setting up
businesses in Tanzania. A Certificate of Incentives is then granted to those who have
qualified. TIC performs a facilitative role for inward investment. In order to strengthen and
expedite facilitation services, senior officers from Government Departments and other
Government Agencies are permanently stationed and operating within TIC’s premises,
representing the Lands Department, Tanzania Revenue Authority, Immigration Department,
Labour Division, Directorate of Trade, and the Business Registration and Licensing Agency.
TIC grants Certificates of Incentives to all bona fide investors. Extensive guarantees are
provided to investors under TIC Certificate of Incentives. Such guarantees cover ownership
of properties, dispensation of assets, repatriation of income and others.

Ministries/Secretariats Involved in the Bioenergy Planning/Applications


The National Biofuels Taskforce is the key government body involved in promoting biofuels
in Tanzania. It is made up of several ministries and government institutions including:

i. Ministry responsible for Planning, Economy and Empowerment,


ii. Ministry of Energy and Minerals
iii. Ministry responsible for Agriculture and Food Security
iv. Ministry of Labor, Employment and Youth Development,
v. Ministry of Finance,
vi. Vice President’s Office –Division of Environment
vii. Ministry of Water and Irrigation,
viii. Ministry of Lands, Housing and Settlement Development,
ix. Attorney General’s Chambers,
x. Tanzania Investment Center,
xi. Tanzania Petroleum Development Corporation,
xii. Community Finance Limited,
xiii. Tanzania Sugar Producers’ Association

NGOs Involved
• The Tanzania Traditional Energy and Environment Development Organization
(TaTEDO)
TaTEDO is a local NGO based in Dar es Salaam, registered in 1990 and working in more
than ten regions of Tanzania. TaTEDO is widely sensitizing rural and urban communities on
the potential use of Jatropha. The main focus has been to provide information and extension
services to smallholder farmers.

• Jatropha Products Tanzania Limited (JPTL)


JPTL is a not-for-profit organization registered in 2005, based in Arusha but operating in five
regions; Arusha, Tanga, Kilimanjaro, Manyara and Singida. It targets working with 2,000
households, and its main objective is to link research and development in areas of
knowledge, skills, information and technology transfer to small scale farmers and enterprises
interested in the Jatropha plant, seeds and products. Also, JPTL promotes the use of
Jatropha oil in lanterns, stoves, and for soap making.

• Envirocare

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The Environmental, Human Rights Care and Gender Organization (Envirocare) is a local,
non-governmental organization formed and registered in 1993. The organization promotes
small-scale farming of Jatropha to realize its objective of environmental conservation and
improved livelihoods with a gender and human rights based approach. Currently, Envirocare
works in Kilimanjaro, Tanga, Morogoro, Regions and in Dar es Salaam.

8.12 Links in Biofuels Development in Tanzania


Government Developmen
AG’S
(Ministries) t Partners
Chambers
(Donor
Community)
Tanzania
Petroleum
Development
Corporation

Community
Finance Tanzania
Limited Investment
National Centre (TIC)
Biofuel
Sugar
Taskforce
Producers
Business
Association
Registration and
Licensing Agency
Markets (BRELA)

Community Key:
Private Direct links (--------)
(Farmers)
Sector Indirect links (-.-.-.-
Investors .)
Needed links
(Production, (..........)
NGOs/CBOs
Processing)

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8.13 Summary of the biofuels activities in Tanzania

The following figure presents the analysis and summary of the information gathered for the
case study of Tanzania

MARKET
FARM Potential exists at all levels
INDUSTRY
Typically subsistence farming with low (households, public facilities,
Still in nascent stages. Current transport and industry including
capital investment. Land area per
efforts mostly focused on biodiesel
household ≈2ha. Ownership of formal power generation).
from jatropha.
titles/deeds very low

• Low crop yields due to non-existent/low •Insufficient feedstock supply • Market information lacking
investment in crop production. •Few processing facilities •Dramatic increase in demand for
•Average planted area of 1.61 hectares per •No technical capacity biofuels but no commercial supply
Issues household for annual crops is low to support •Economic feasibility still not assured
an average size smallholder households •No commercial facilities established yet
•The best crop producing areas have less
available land for cultivation.
•Liberalization of agricultural sector •Limited interface between energy policy • Energy policy aims to promote
•Focus on food security and plans relating to national economic economic energy pricing.
•Policy promotes cash crops and production planning. •Develop domestic energy resources
of industrial raw material sustainably •Biofuels Task Force is working on the which are shown to be least cost
Policies •Promote integrated and sustainable use of preparations of policies & regulations on options
natural resources. biofuels.
•Land policy of 1997 clearly recognizes and •Energy Policy encourages
clarifies customary and other use rights to commercialization and private sector
land participation.
•Several actors (e.g. multinationals, NGOs, •More than ten companies establishing •A statement on blending biofuels with
institutions and small holders farmers) are farms for biofuels farming mineral petrol has been slotted in the
Emerging implementing biofuel projects. •Investors have started biofuel production at New Petroleum Supply Act.
Patterns/ •Significant potential for irrigated land and on the experimental stage
relationships several areas apt for oil palm and jatropha.

•Improved standard of living and linkages •Growth in agro-industrialization •Initiatives started will create market
with others sectors in the economy •Private-sector-led development opportunities
•Employment opportunities will be created •Tanzania is a net fuel importer hence
through agro-industrializations high potential to become a significant
•Opportunities for income generation and biofuel producer.
diversification by producing and selling •Biofuel development could represent a
biofuel feedstocks paradigm shift in agricultural
•Energy supply in rural areas will stimulate development.
rural development and reduce pollution
caused by fire wood
Impact/ future
•Reduced time spent by women and children
implications
on gathering firewood, fetching water,
cooking, etc.
•May generate new pressures on land tenure
arrangements, leading to alienation
•Poor households may either sell or be forced
to relocate as the rush to meet increasing
demand gathers momentum
•Competition for inputs (e.g. land, water,
fertilizers) that might be diverted from food
production might precipitate a food crisis.

8.14 Conclusions

Tanzania has received major attention from investors for large scale biofuel production
forcing the government to accelerate the process of the creation of a Biomass Task Force in
the absence of a biofuel policy. As in the previous case studies, the problem in the country

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lays in the issues regarding the willingness to grow bioenergy crops in the absence of low or
non-existant investment that reflect in low yields.
There is also a will to expand production arising in the industrial sector with major investors
for this area. Nevertheless, issues regarding land tenure and the average size of farms for
small holders will make difficult in certain areas to work with large scale initiatives. This could
be related to the issue of either displacement of farmers or convincing the farmers of an
alternative crop to work as out-growers.
The stakeholder assessment demonstrated that there is need for cross-cutting activities at
policy and planning level and with main actors such as farmers, in-spite of the existence of
the Task Force.
The potential market for biofuels is big at all levels in Tanzania and with adequate
enforcement of the policies and guidelines, it will be possible to produce bioenergy crops
without jeopardising food production. At any rate, a case-by-case approach to each of the
initiatives need to be adopted.

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9. KENYA CASE STUDY

9.1 Country’s characteristics


Location

Kenya is located on the eastern part of the African continent. It lies across the equator at
latitude of 4° North to 4° South and Longitude 34° East to 41° East. The country is bordered
by Sudan and Ethiopia in the north and Uganda to the west. Somalia lies to the east of the
country while Indian Ocean borders the country in the south-eastern part. To the southwest
of the country lies Tanzania while to the west lies Lake Victoria and Uganda. It contains a
total area of 582,650sq km sq including 13,400 sq km of inland water and a 536km coastline.

Figure 9.1: Map of Kenya showing location relative to its neighbouring countries

Geographical Characteristics
Kenya’s geography is diverse and varied. The coast is a low-lying area and extremely fertile.
It has a coral reef supported by a dry coastal plain that is covered by thorny bushes and
savannah. The terrain of the country gradually changes from the low-lying coastal plains to
the Kenyan highlands. The highest point of the country lies in Mount Kenya, which is 5,199
meters high.

The Great Rift Valley is located in the central and western part of the country and basically
dissects the Kenyan highlands into east and west. The highlands have a cool climate and
are known for their fertile soil, forming one of the major agricultural regions of the country.
However, about 80% of the land area is Arid and Semi Arid. A large number of swamps are
in the Loraine Plain, situated in the north-eastern part of the country.

There are also a number of lakes and rivers; most of the lakes are located in the Rift Valley.
On the northern part of the country is Lake Turkana. On the western part of the country is
Lake Victoria. Other major Rift Valley lakes include Lake Naivasha and Lake Nakuru. The
rivers Tana and Athi flow in the south-eastern part of the country while Nzoia, Yala and Gori,
flow across the country before draining into Lake Victoria. Ewaso Ng’iro River is found in the
north-eastern part of the country.

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A large number of rainforests are found in the east of the country, including the Kakamega
Forest and the Mau Forest.
Kenya is divided into seven agro-ecological zones ranging from humid to very arid. Less
than 20% of the land is suitable for cultivation, of which only 12% is classified as high
potential (adequate rainfall) agricultural land and about 8% is medium potential land. The
rest of the land is arid or semi-arid. Furthermore, only 60% of the high potential land is
devoted for crop farming and intensive livestock production while the rest is used for food
and cash crop production, leaving the rest for grazing and as protected.
The agro-ecological zones (ACZ) are as shown in Figure 2 below:

RAINFALL
ACZ CLASS
(mm)
I Humid 1100 - 2700
II Sub-Humid 1000 - 1600
III Semi-Humid 800 - 1400
Semi Humid Semi
IV 600 - 1100
Arid
V Semi Arid 450 - 900
VI Arid 300 - 550
VII Very Arid 150 - 350

Figure 9.2 Agro-Climatic Zones of Kenya (Source: Kenya Soil Survey)

Climate
Kenya's climate is fairly warm throughout most of the country. Most of the country has a
tropical climate. Exceptions to this are the coastal belt and the northern parts, which are
generally arid and hot. It is hot and humid at the coast, temperate inland and very dry in the
north and northeast parts of the country.

The average annual rainfall at the coast is 1200mm and the average daily temperature
ranges from 27°C to 31°C. Nairobi, the capital city, has an altitude 1,661 metres and has a
temperature range of 25.20 -13.60°C. Eldoret is found in the Rift valley at an altitude of
3,085m, with a temperature range of 23.60 - 9.50°C. Lodwar, also in the Rift Valley but near
the northern-most extremity is at an altitude of 506 m above seal level, with a temperature
range of 34.80 - 23.70°C.

There are 2 rainy seasons; the long rains occur from April to June and short rains from
October to December. The rainfall is sometimes heavy and when it does come it often falls
in the afternoons and evenings. The hottest period is from February to March and coldest in
July to August.
The majority of the country receives less than adequate rainfall needed to support crop
cultivation. Over two-thirds of the country receives less than 500mm of rainfall per year and
79% has less then 700mm annually. Only 11% of the country receives more than 1000mm
per year. The mean annual rainfall shows a wide spatial variation, ranging from about

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200mm in the driest areas in northwestern and eastern parts of Kenya to the wetter areas
with rainfall of 1200-2000 mm in areas bordering Lake Victoria and Central Highlands east of
the Rift Valley. As a result, the Central Highlands, parts of Rift Valley, the Lake Victoria
region and the coastal area boast the most intensive agriculture and greatest concentration
of people. Pastoral farming dominates the remaining drier regions of Kenya.

Administration
Kenya is divided into 8 provinces; the provinces are subdivided into more than 71 districts
which are then subdivided into more than 260 divisions. The divisions are subdivided into
about 2500 locations which in turn are sub-divided into more than 6,600 sub-locations.
Kenyan local authorities mostly do not follow common boundaries with divisions. They are
classified as City, Municipality, Town or County councils. There are 210 constituencies which
form the basis of parliamentary representation.

Environmental Characteristics
The environment is an increasingly important issue in Kenya as the poor directly rely on the
water and land resources surrounding their communities. With only 8% of arable land and
75% of its workforce engaged in agriculture, Kenyan farmers face growing problems of soil
erosion, deforestation, water pollution, and desertification. The recent drought (2008/9) left
3.5 million people without enough food to survive. In Northern Kenya, pastoralists have lost
their herds to starvation and conflicts are mounting over scarce water resources.

The most important current environmental issues include water pollution from urban and
industrial wastes; degradation of water quality from increased use of pesticides and
fertilizers; water hyacinth infestation in Lake Victoria; deforestation; soil erosion;
desertification; and wildlife poaching for game meat and animal trophies.

Kenya currently has approximately 1.24 million hectares of closed canopy indigenous forest.
The majority of these forests are managed by the Kenya Forest Service, whilst the Kenya
Wildlife Service (KWS) manages other forests in National Parks and Nature Reserves.
Coastal forests play an important role in shoreline protection (particularly mangroves) whilst
the five water towers (Cherangani Hills, Mount Elgon, Mount Kenya, Aberdares, and Mau
Forest Complex) play an essential role in water management both nationally and
internationally. The montane forests of Kenya’s five water towers are surrounded by some of
the most densely populated areas of Kenya and are therefore under significant pressure for
new settlements and the supply of timber and non timber products to those communities
despite their designation as protected areas. Approximately 5% of the remaining forest area
was lost between 1990 and 2005. The most threatened forests currently include Kakamega,
the Mau Forest Complex and coastal forests. There are also currently approximately
165,000 hectares of plantation forestry in Kenya, which are generally poorly managed. One
of the key identified drivers of deforestation and land degradation in Kenya is the demand for
fuelwood which accounts for 70% of all energy consumed (90% in rural areas).

About 80% of the total land area in Kenya is classified as arid and semi arid lands (ASAL)
which comprises savannah and grassland ecosystems traditionally used as pastoral lands.
Woodlands, bushlands and grasslands cover approximately 40 million hectares of land in
Kenya and constitute significant carbon sinks. The ASALs are subject to recurring droughts
and resource pressure resulting in high vulnerability to land degradation and desertification
threatening livelihoods as well as resulting in high levels of greenhouse gas emissions.
Approximately 30% of the land area in Kenya is affected by severe to very severe land
degradation and an estimated 12 million people (one third of current population), depend
directly on land that is being degraded. Besides forest lands 16% of the land cover in Kenya
is classified as agricultural (arable) land.

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9.2 Population Size and Characteristics


Kenya’s population has grown by an average of one million people per year in the past 10
years. The data, based on the national census in August 2009, shows that the number of
people in the country grew by 37.43%, from 28, 686, 607 at the 1999 census to 39, 423, 264
in 2009. The figures also show that the country has a population density of 67 people per
square kilometer, with an annual population growth rate of approximately 2.7%. The infant
mortality rate recorded in the survey was 52 deaths per 1,000 live births. The under-five-
mortality rate decreased to 74 deaths per 1,000 live births in 2008-09 from 115 in 2003.

The Age structure is as follows: 0-14 years - 42.3% of which males are 8,300,393 compared
to 8,181,898 female; 15-64 years - 55.1%; 65 years and over: 2.6% . Seventy-five percent of
Kenya’s population is under 30 years of age. Young people (15 - 30 years) number
10.8million or about 32% of the 2005 population projection. Of these, 57% are female and
they form about 60% of the total active labor force in the country.

The Birth rate by 2009 estimates is 36.64 births/1,000 of the population. The Death rate on
the other hand is 9.72 deaths/1,000 of the population.

The sex ratio at birth is 1.02 male(s)/female; under 15 years: 1.01 male(s)/female; 15-64
years: 1.01 male(s)/female; 65 years and over: 0.84 male(s)/female; total population: 1
male(s)/female.

The total Infant mortality rate is 54.7 deaths/1,000 live births, for males 57.56 deaths/1,000
live births while the female mortality rate is 51.78 deaths/1,000 live births.

The total life expectancy at birth is 57.86 years and is slightly lower for males at 57.49 years
compared to the female mortality rate which is 58.24 years. The Total fertility rate on the
other hand is 4.56 children born/woman.

9.3 Gross Domestic Product, Human Development Index and Poverty Levels
According to the Kenya Institute of Public Policy Research and Analysis (KIPPRA), Kenya’s
poverty levels declined in 2006/07 but there are significant differences within and across
provinces. Data available from the Kenya Integrated 2005 Household Budget Survey
(KIHBS) show that national absolute poverty declined to about 46 per cent in 2005/06 from
55.5 per cent in 2000. Although the proportion of the population living in poverty has
declined, the number of those living below the poverty line is estimated to have increased
from 13.4 million in 1997 to about 16.6 million in 2006. Furthermore, although inequality
situation in Kenya has improved over the last couple of years, it remains a policy concern.
Analysis of household consumption expenditure distribution reveals that the poorest 10 per
cent of rural households control only 1.63 per cent of the total expenditure, while the richest
10 per cent control 35.9 per cent of total household expenditure.

There has been a remarkable improvement in the country’s economic performance in the
last five years up to 2007. It is only in 2006 and 2007 that per capita income of Kenyans
exceeded the levels registered in 1997. In June 2998, Kenya launched the Vision 2030,
which is an economic development plan by the Kenyan government to develop several
different economic zones in various parts of the country. The Vision 2030 targets a GDP
growth of 10 per cent per annum, which implies that Kenya’s income per capita would
double by 2018.
The GDP (purchasing power parity) for 2008 was estimated to be 61.83 billion US Dollars,
growing at a rate of 2.2% while the GDP per capita is 1, 600 US dollars. The GDP
composition by sector is as follows:

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GDP Contribution by Sector (Kenya)

24%
Agriculture
Industry
59% 17% Services

Figure 9.3: GDP Composition by Sector in Kenya

The Post-election violence in early 2008, coupled with the effects of the global financial crisis
on remittance and exports, reduced GDP growth to 2.2% in 2008, down from 7% in 2007.
The labor force is estimated to be 9.45 million, out of which 75% is employed in the
agriculture sector.

The Human Development Index (HDI) of the UNDP provides a composite measure of three
dimensions of human development: living a long and healthy life (measured by life
expectancy), being educated (measured by adult literacy and gross enrolment in education)
and having a decent standard of living (measured by purchasing power parity, PPP,
income). By this measure, Kenya’s HDI in 2009 is 0.541, which gives the country a rank of
147th out of 182 countries with data. Between 2000 and 2007 Kenya's HDI rose by 0.51%
annually from 0.522 to 0.541 today.

9.4 Main food crops


The main food crops in Kenya are maize, beans, cassava, potatoes, sorghum, bananas and
other fruits. These crops are mainly produced for subsistence. Maize is the main staple food
and on average 1.5 million hectares is planted with maize annually, with an annual
production ranging between 16.6 and 34.8 million bags (1.5 and 3.1 million MT) depending
on the prevailing weather and market conditions. Annual national maize consumption
requirement is about 32 million bags (2.9 million MT). The shortfall in production is met
through exports.

9.5 Main Agricultural and Food Crops Imports/Exports


Food products dominate Kenya's agricultural imports (88 % of the total), but account for only
a quarter of agricultural exports. During the 10 years 1985-94 food imports were on a
strongly upward trend, rising at a linear rate of US$27 million per year. They declined in
1995 and 1996 and surged in 1997, to remain at that level in the following year. Food
exports also rose during the 10-year period, at the linear rate of US$19 million per year.
They started to rise in 1992 and remained high in the subsequent years till now. The overall
outcome, in terms of net food imports, was highly negative: net imports in 1995-98 were 45
percent higher than in 1990-94 level and 15 percent above the extrapolated trend value. The
main food imports include: rice, wheat, maize, other cereals, vegetable oils, sugar, fruits,
vegetable, and dairy products.

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Major cash crops produced in Kenya include tea, horticultural produce, coffee, pyrethrum,
cotton, cashew nuts, and coconuts among others. In addition to coffee, tea and horticultural
produce, Kenya is the world's largest producer and exporter of pyrethrum. Most of these are
produced in small holder farming systems. Sugarcane and wheat are mainly produced for
the local market. Kenya also produces sisal, tobacco, and Bixa natto (a natural food coloring
agent) for export.

Kenya is Africa's leading tea producer, with black tea being Kenya's leading agricultural
foreign exchange earner. Production in 1999 reached 220,000 tons. Tea exports were
valued at $404.1 million in 2001, or nearly 18% of total exports. The tea industry is divided
between small farms and large estates. Coffee is Kenya's third leading foreign exchange
earner, after tourism and tea. In 2001, coffee earnings totaled $91.8 million. Production in
2001/02 amounted to 52,140 tons. Similar to the tea sector, coffee is produced on many
small farms and a few large estates. All coffee is marketed through the parastatal Coffee
Board of Kenya.
Kenyan horticulture has become prominent in recent years, and is now the third leading
agricultural export, following tea and coffee. Fresh produce accounted for about 30% of
horticultural exports, and included green beans, onions, cabbages, snow peas, avocados,
mangoes, and passion fruit. Flowers exported include roses, carnations, statice, astromeria,
and lilies.

9.6 Characteristics of Livelihoods in Farming Systems


Land tenure in Kenya falls into four different entities namely government (public), County
councils (local authorities), Individuals (private) and groups (communal). Different legal
instruments govern different categories of land and owners thereof. To date, land ownership
in over 40% of Kenya still remains informal.
According to Kenya’s Ministry of Agriculture, the bulk (98%) of the farm holdings in Kenya
are small (<10 ha) and lie mainly in the high potential areas. The medium and large scale
farms account for about 2% of the holdings, but cover about 54% of the area farmed.
Nationally, the average farm size is about 2.5 ha. On these small farms most of what they
produce is to meet their family's needs. Some crops are grown for sale to raise money to
buy consumer items. Typically a farmer grows several different crops together in the same
field: a grain such as corn; a legume such as beans; and perhaps a few trees producing
coffee, bananas, or mangoes. This allows the family to harvest a variety of foods for a
balanced diet. Some farmers also keep a few animals such as cattle and goats, and many
raise poultry.

9.7 Policies in Place and Link with the Bioenergy Sector


Kenya has a regulatory framework in the fields of biomass, biodiesel, bioethanol, charcoal,
fuel wood, biogas and municipal waste.

Energy Policy
The Energy Policy is contained in Sessional Paper no. 4 of 2004 and focuses on all forms of
energy including bioenergy. Article 103, Part V, of the Energy Act 2006 addresses
renewable energies, energy efficiency and conservation. Specifically, it mandates the
Minster f or Energy to do the following duties that are directly relevant to biofuels
development:
• Formulating a national strategy for coordinating research in renewable energy;
• Providing an enabling framework for the efficient and sustainable production,
distribution and marketing of biomass, solar, wind, small hydro, municipal waste,
geothermal and charcoal;

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• Promoting the use of fast maturing trees for energy including biofuels and the
establishment of commercial woodlots including peri-urban plantations;
• Promoting the development of appropriate local capacity for the manufacture,
installation, maintenance and operation of basic renewable technologies such as
bio-digesters, solar systems and hydro turbines;
• Promoting international co-operation on programmes focusing on renewable energy
sources;
• Harnessing opportunities offered under clean development mechanism and other
mechanisms including, but not limited to, carbon credit trading to promote the
development and exploitation of renewable energy sources;
• Promoting the utilization of renewable energy sources for either power generation or
transportation;
• Promoting the production and use of gasohol and biodiesel.

Bioenergy Policy
The bioenergy policy objective is to ensure sufficient bioenergy supplies to meet demand on
sustained basis while minimizing environmental impacts associated with usage. It has
specific objectives which include to:
• Formulate national strategies;
• Support and development of biofuels
• Promote private sector participation;
• Increase rate of adoption of efficient stoves
• Use of fast growing trees for energy production

Fiscal Incentives
There are also fiscal incentives which are intended to promote biofuels in Kenya through the
following mechanisms:
• Provide tax incentives to producers of renewable energy technologies and related
accessories to promote their widespread use
• A 10 year tax holiday for power plants using renewable energy including biomass
• Allow duty free importation of renewable energy hardware to promote widespread
usage
• Provide fiscal incentives to financial institutions to provide credit facilities to
consumers and entrepreneurs.

Development of National Strategies


There are also a number of initiatives under the biofuel policy, but three of specific relevance
to biofuels are:
• Biodiesel strategy
• Bioethanol strategy
• National Task Force on Accelerated Development of Green Energy

National Biodiesel Strategy


The National Biofuels Committee (NBC) was set up in 2006 to coordinate all biodiesel
stakeholders. The committee first focused on developing biodiesel strategy for 2008-2012.
The Stakeholders included Line Ministries (e.g. Energy, Agriculture), Research institutions,
Academia, NGOs, and Private organizations. The NBC was later launched as the National
Biodiesel Strategy. The crop of choice was Jatropha but the strategy also encourages
research on other crops such as castor and croton. The purpose of the strategy is to:
• Fast track development of the biodiesel energy resource in Kenya;
• Increase security of energy supply by reducing vulnerability resulting from
dependence on imported fossil fuels;
• Achieve a blending ratio of B5 by 2012 and B10 by 2020;

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• Diversify rural energy sources by supplementing / substituting kerosene with


biodiesel;
• To contribute to poverty alleviation through diversification of income sources;
• Address global warming through substitution of petroleum fuels.

National Bioethanol Strategy


Kenya also has a Bioethanol Strategy whose purpose is to:
• Fast track development of the bioethanol energy resource;
• achieve blending ratio of E-10 (bioethanol with petrol) by December 31st 2010;
• Increase security of energy supply by reducing reliance on imported fuels;
• Diversify the sugar industry base and strengthen competitiveness of sugar
factories;
• Minimize pollutant effects of woodfuel and kerosene by substituting these fuels
with bioethanol.

National Task Force on Accelerated Development of Green Energy


Kenya is fast-tracking its plan to boost renewable energy and recently launched the National
Task Force on Accelerated Development of Green Energy. The initiative is being
coordinated by the office of the Prime Minister. In adopting renewable energy, Kenya hopes
to reap added gains of turning the country into a green economy. On top of benefiting from
carbon finance, the renewable energy generation in Kenya will inject additional power to the
national grid to assuage fears of the manufacturing sector and potential investors. By June
2012, according to the Office of the Prime Minister, the country will have boosted its energy
capacity by up to 2,000MW through geothermal, wind, bio-fuel, and solid waste and coal-
driven power plants.

The Prime Minister chairs a taskforce that is to advise the government on the projects to be
implemented. The taskforce’s chief task is establishing financing partnerships with the
private investors. Members of the steering committee of the taskforce include the Prime
Minister, the two Deputy Prime Ministers and the ministers for Energy, Industrialization,
Environment and Agriculture. Others are the Prime Minister’s Permanent Secretary and the
chairpersons of Kenya Private Sector Alliance and Association of Large Power Consumers.
The experts group is chaired by Energy Permanent Secretary with his counterpart at
Treasury and the Prime Minister’s economic adviser acting as alternative chairs.

Agriculture Policy
Agricultural policy in Kenya revolves around the main goals of increasing productivity and
income growth, especially for smallholders; enhanced food security and equity, emphasis on
irrigation to introduce stability in agricultural output, commercialisation and intensification of
production especially among small scale farmers; appropriate and participatory policy
formulation and environmental sustainability. The key areas of policy concern, therefore,
include:
• Increasing agricultural productivity and incomes, especially for small-holder farmers;
• Emphasis on irrigation to reduce over-reliance on rain-fed agriculture in the face of
limited high potential agricultural land;
• Encouraging diversification into non-traditional agricultural commodities and value
addition to reduce vulnerability;
• Enhancing the food security and a reduction in the number of those suffering from
hunger and hence the achievement of MDGs;
• Encouraging private-sector-led development of the sector. Ensuring environmental
sustainability.
Within the context of the policy therefore, biofuels production can be achieved not only as a
way of enhancing farmer incomes but also ensuring environmental integrity.

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Forest Policy
The Kenya Forest Policy of 2005 also advocates for environmental conservation and
provision of sustainable biomass energy. This is also supportive of biofuels development in
the country.

Land Policy
Kenya has not had a clearly defined or codified national land Policy since independence.
However, in 2009 the Government embarked on formulation of a National Lands Policy
whose goal is to guide the country through the sustainable and equitable use if land. The
policy emphasizes the need to address environmental degradation and the need for security
of tenure for all Kenyans, including all marginalized groups, communities and women. The
policy designates all land in Kenya as either Public, private or Communal land. The policy
was adopted by parliament on 3rd December 2009.

Environmental Policy and Environment Management Act


Kenya does not yet have an Environmental policy, although a Draft Environmental Policy is
in the final stages before adoption. The Draft National Environmental Policy (NEP), 2008
treats climate change and disaster management as an emerging environmental issue and
states that the government will adopt two approaches in combating climate change –
mitigation and adaptation. The NEP suggests following measures that are of relevance to
biofuels development:
• Identify and raise awareness of opportunities for adaptation measures through
promotion of appropriate technology transfer and capacity building;
• Develop and implement under the Kyoto Protocol’s Clean Development Mechanism
(CDM) programmes and projects that encourage significant levels of investment and
technology transfer for sustainable development;
• Build and strengthen research capacity on climate change and related environmental
issues.

Environmental Management and Coordination Act (EMCA)


The legal framework for environmental concerns within Kenya is the Environmental
Management and Coordination Act No. 8 (EMCA) of 1999. The act recognizes the need to
promote renewable energy.
Biofuels Industry/Programmes Development in Kenya
Although the biofuel industry is not highly developed in Kenya, there currently exist many
initiatives and programmes that are meant to promote the development of the sector. These
initiatives involve the government, private sector, NGOs and research institutions.

Bioethanol Programmes
The pioneer industry in bioethanol production was the Agro-Chemical and Food Complex
(ACFC) in Muhoroni which in the 1980s started production of ethanol form molasses for
blending with petrol. This collapsed in 1993 due to lack of policy and unsustainable pricing.
ACFC still produces ethanol albeit it is mostly exported fro manufacture of potable alcohol.
Together with Spectre International, the two companies produce respectively, 60, 000 and
65, 000 litres daily. Mumias Sugar Company is set to start integrated ethanol production in
2013, with a capacity of 80, 000 litres daily.

9.8 Biodiesel Programmes


Although still in its nascent stage, a flurry of activities within government agencies, NGOs
and the private sector indicate potential to develop the biodiesel sub-sector. The focus is
currently on jatropha as a feedstock although castor, croton and coconut are also being
considered.

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Examples of private sector, government agency and NGO involvement in biodiesel include:
• Better Globe Forestry Limited which has planted 48 hectares of jatropha trial in
Kiambere in Eastern Kenya.
• Green Fuels Kenya Limited also ahs trial jatropha plantation in Thika in Central
Kenya.
• Energy Africa Limited has worked with over 200 farmers since 2006 and more
than 200, 000 jatropha trees have been planted.
• Agri-Business Group is an agricultural consulting company based in Nakuru and
has been working with farmers that is working with farmers throughout Kenya.
• Green Power East Africa Limited is currently producing biodiesel on a small scale
using a BioKing reactor with a capacity of about 1, 000 litres per day.
• Kenya Industrial Research and Development Institute is experimenting with crude
home-made reactors using a variety of feedstock.
• Kenya Forestry Research Institute has also been conducting research on various
trees and shrub species to evaluate their potential for biodiesel.
• The Ministry of Energy established the National Biodiesel Committee with
representation from the petroleum industry, line ministries, NGOs and agricultural
producers.
• ICRAF, the Aga Khan Foundation’s Coastal Rural Support Programme (CRSP),
Vanilla Jatropha Development Foundation (VJDF), Norwegian Church Aid (NCA),
Green Africa Foundation (GAF) and other NGOs are working with local farmers to
promote jatropha for biodiesel in various parts of the country.
• Initiative for the Promotion of Biomass is lead by the Institute for Research in
Sustainable Energy and Development (IRSEAD) with membership from the
Monitoring and Evaluation Consulting Engineers, Ministry of Energy, Kenya Sugar
Board, sugar factories and sugar farmers. It is supported by AFEPREN and the
Heinrich Böll Foundation to increase the use of renewable energy in the region in
the next 10-15 years.
• Initiative to Promote Renewable Energies for Poverty Alleviation lead by the
Ministry of Energy and involves the participation of other ministries, NGOs,
industries and bilateral donors.
• Jatropha Project in Kenya initiated by Biwako Bio-Laboratory Inc. and Hydronet
Energy Company Limited and aims to grow up to 100, 000 hectares of jatropha.

9.9 Crops Used for Biofuels

Type and Conversion Technology


Kenya has been producing ethanol for over twenty years in modest quantities and in the
1980s was blending it in a petrol distribution network as ‘gasohol’. Production was
undertaken by Agro-Chemical and Food Complex in Muhoroni in the Western Region of
Kenya. A new entrant to the ethanol production industry is Spectre International in Kisumu,
also in the western region. Although Spectre International has invested in some state-of-the-
art technologies, ethanol production is still low-efficiency and costly in Kenya. Ethanol in
Kenya is currently being produced from sugar processing residue known as molasses in
stand-alone facilities rather than as an integrated process with sugar manufacture (as is
done in countries where power alcohol production is at advanced stages). Mumias Sugar
Company is making plans to start an integrated ethanol production facility by 2013.The
molasses is fermented and then distilled to produce concentrated (up to 98%) alcohol.
Feedstock for ethanol includes starchy crops such as grains (maize, sorghum), tubers like
cassava and sugarcane.

The biodiesel industry in Kenya is not as well-developed and is still in its nascent stages,
although a few small industries process and sell the biodiesel to operators in the matatu

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(public transport vehicles) industry. A process called trans-esterification is used, in which the
vegetable oil is mixed with alcohol and a catalyst to produce biodiesel and glycerol. Straight
vegetable oil (unprocessed biodiesel) is also used in lighting and cooking and running
stationary engines such as power generators. Feedstocks for biodiesel include oil bearing
seeds such as cottonseed, jatropha, coconut, croton, rapeseed and castor.

Potential Crops (Biofuel Feedstocks)


A 2008 study by ESD (now Camco) commissioned by GTZ identified the most viable biofuel
crops in Kenya and shows that the following yields are possible based on real-world
scenarios as shown in the table below:

Table 9.1 Viable Biofuel crops in Kenya


New Farmlands Existing Farmlands
Land Production Biofuel Land Production Biofuel
Yield
Ha (’000 (’000 Ha (’000 (’000
(T/Ha)
(’000) tonnes) liters) (’000) tonnes) liters)
Ethanol
Cassava 9.6 2.08 19.97 3, 395 4.15 39.84 6, 773
Sorghum 35.0 5.09 206.50 8, 260 11.06 387.10 15, 484
Sugarcane 33.4 0.09 3.01 30 0.83 27.72 277
Biodiesel
Castor 0.23 6.82 1.57 703 10.42 2.40 1, 075
Coconut 1.64 0.03 0.05 18 0.18 0.29 107
Cottonseed 0.6 1.42 0.85 124 1.76 1.06 154
Croton 2.50 0.65 1.63 548 2.56 6.40 2, 150
Jatropha 2.50 6.26 15.65 5, 258 9.41 25.53 8, 578
Rapeseed 2.00 0.16 0.32 125 0.82 1.64 643
Sunflower 0.92 3.48 3.20 1,325 5.78 5.32 2, 202

According to this study, sorghum-would provide the greatest opportunity to increase ethanol
production without competing existing agricultural production. Other feedstock may not be
viable in the short-term but in the long term would ensure sustainable production. Castor and
rapeseed were identified as possible large sources of feedstock in the near term, with castor
maximising more semi-arid areas and rapeseed being grown in conjunction – as rotational
crop – with wheat, barley and other staples. The study also showed that if the production is
optimized based on scientific literature and fro other arts of the world, it is possible to more
than double these figures.

Market for Raw Material


An economic analysis shows that the feedstock costs in Kenya are 60% lower than in Brazil,
but the cost of biofuel production is 75% higher in Kenya due to poor infrastructure and
inefficiency in production. With the exception of ethanol, the market for biofuels is still in its
infancy. Even for ethanol, with the collapse of the power alcohol programme in the early
1990s due to lack of policy and unsustainable pricing, the bulk of ethanol produced in the
country is either exported or used as an intermediate feedstock for other industrial products.

The prices of most potential feedstocks are therefore not based on their sale for biofuel
manufacture, but for other more ‘conventional’ uses. The data in the table gives indicative
figures on the cost of potential biofuel feedstocks as at 2008 (from both food and non-food
crops) as shown in the table below. The prices are based on conversations with farmers,
data from the Ministry of Agriculture, Kenya Agricultural Research Institute and FAOSTAT.

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Table 9.2 Biofuel feedstocks prices in 2008 in Kenya

Price/ton of feedstock
Feedstock (USD at exchange rate of
Ksh 70/USD)
Molasses (sugar processing
28 - 35
waste)
Cassava 92.8
Sorghum 17
Sugarcane 35
Castor 285.7
Coconut 419
Cottonseed 285.7
Croton 214.3
Jatropha 214.3
Rapeseed 371.4
Sunflower 456.9

End use
Currently, most of the ethanol produced in Kenya is exported to Uganda and the Democratic
Republic of Congo (DRC) for beverage use. However, there is potential to use the ethanol
as petrol blend, and fuel for lighting and cooking. A little biodiesel is currently produced and
used to run cars and stationary engines in Kenya. Efforts have also been expended at the
Kenyan coast by UNDP to promote the use of Straight Vegetable Oil for lighting and cooking
as a substitute for kerosene, firewood and charcoal.

9.10 Implications of Conversion of Biofuels Raw Material


Ethanol production is a relatively mature technology in Kenya although the production
capacity is low and currently is not used for fuel. Biodiesel, however, is still in its infancy and
therefore few impacts can currently be attributing to it. However, with increasing investment
in the biofuels industry, there are bound to major implications.

Implications for Water use


Although there are numerous environmental benefits of using biofuels, the processing of
feedstock requires large amounts of water. Data shows that 1, 000 – 2, 000 litres of water is
required to process one tonne of sugar to ethanol. Kenya is already classified as a water-
stressed country with very little stored water per capita. When severe droughts occur, water
storage areas are rapidly drawn down; and where boreholes and wells have been dug up,
these dry up during droughts due to poor or low recharge. Additionally, huge investments
need to be made in treatment plants to ensure compliance with established water quality
standards. Information from Agro-Chemical and Food Complex Company, one of the largest
ethanol manufacturers in Kenya shows that the spent wash from ethanol production has a
malodorous smell and dark colour that often attracts complaints for the surrounding
community.

Implications for Employment


Potential employment and incomes benefits are enormous for Kenya. A 2008 report showed
that the jobs-to-investment ratio for biofuels is about 100 higher than for petroleum refineries.
Employment opportunities will be created through agro-industrializations. Additionally, there
are opportunities to provide farm jobs as well as expanded income through adoption of new
cash crops.

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Data from Mumias Sugar Company, the biggest sugar producer in Kenya, shows that
producing an additional 93 million litres of ethanol in Western Kenya (as is planned for 2013)
would create 500 -1000 new jobs in the manufacturing and transport sector. In Mumias
alone, up to 100 people including 20 professionals earning an average of Ksh 100, 000 (1,
430 USD) will be required. The other workers would earn 15, 000 – 35, 0000 kshs (214 –
500 USD). It is estimated that one wage farm job will be created for every 54.9 hectares
planted with ethanol feedstock, and one casual farm job for every 30.4 hectares planted. For
biodiesel, it is estimated that one non-farm job will be created for every 100, 000 – 180, 000
litres of biodiesel produced.

Implications for land tenure


Analysis shows that depending on the type of feedstock, there might or might not be enough
land to produce enough feedstock to meet the required fossil fuel substitution/blending.
Some feedstock can only grow on high potential arable land, while others can be grown in
low potential land and therefore not compete with food crops for land. For example, growing
more sugarcane will require one fifth of potentially suitable land that is not currently being
used for food or cash crops. The analysis also shows that not enough land exists for
producing the required amount of ethanol from molasses. However, ample, non-competitive
but suitable land exists for cassava and sorghum. For biodiesel, ample land exists for croton,
jatropha, sunflower and castor. Cottonseed, rapeseed and coconut are limited by land
availability.

9.11Mapping of Policy and Institutions and Links with Bioenergy

First hand players


The Ministry of Energy is in charge of all energy initiatives in the country and must be
involved in all investments in the energy sector. In addition to dealing with the Ministry of
Energy, there are certain standard procedures that every investor must comply with prior to
commenting business in Kenya:
i. Obtain an investment certificate form the Kenya Investment Authority. The certificates
entitle one to several licences (abut 71) that one must have before investing Kenya,
including entry and employment permits under the Immigration Act. The KIA’s purpose if
threefold – to aid investors in the bureaucratic requirements of starting a business, keep
track of investments and protect local investors from detrimental investments.
ii. Acquiring land – biofuel investors can obtain feedstock from freehold land owned by the
investor; leasehold ownership; a contract with a landowner where the investor has rights
to the crop, or by purchasing feedstock form farmers or on the open market.
iii. The Environmental Management and Coordination Act requires an Environmental and
Social Impact Assessment before the start of any development project.
iv. Equipment purchase and importation which requires the approval of the Kenya Bureau of
Standards (KEBS) to ensure conformity with Kenya standards.
v. Since establishment of biofuel crops may require importation of plant material and /or
seed, there is need for compliance with the Seed and Plant Varieties Act and the
Protection Act. Under these acts, the Kenya Plant Health Inspectorate Service (KEPHIS)
has the duty to carry out testing, certification, quarantine and grading of seed and plant
material.

Ministries/Secretariats Involved in the Bioenergy Planning/Applications


The Ministries involved include the Ministry of Energy, Ministry of Agriculture, Ministry of
Trade and Industry, Ministry of Immigration, Ministry of Finance, Ministry of Environment and
Mineral Resources, Ministry of Lands. Other agencies which although inked to parent

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ministries are autonomous bodies include National Environment Management Authority


(NEMA), KEBS, KEPHIS, KIA and the various agencies under the lands Ministry.

NGOs Involved
NGO involvement in biofuels is limited to biodiesel. The following are some of the NGOs that
are involved in biofuels initiatives in Kenya:
• Green Africa Foundation (GAF) works in partnership with the private sectors,
individuals, self-hep groups and the government. GAF is working in partnership with
Japanese investors who are planning to establish jatropha plantations and set up
processing plants.
• The Vanilla Jatropha Development Foundation (VJDF) also works with government,
private sector and farmers to increase jatropha production around the country. It has
projects in Koibatek (in the mid-Rift Valley), Kisumu (in the Lake Victoria Basin) and
Kibwezi (and ASAL area).
• The Norwegian Church Aid (NCA) is working in Mpeketoni with the Lamu Cotton
Growers Association and ESDA (now Camco) to develop an integrated jatropha
energy system that involves growing jatropha, extracting the straight vegetable oil
and using it to generate electricity.
• Other non-governmental organisations include ICRAF, the UNDP small Grants
Programme and the Aga Khan Foundation through the Coastal Rural Support
Programme working with farmers at the Coast.

Other Stakeholders Identified


Other stakeholders identified include:
Kenya Biodiesel Association
The association was formed to:
• Coordinate stake-holders including feedstock producers, processor, marketers,
distributors etc.
• Establishment of buying centres
• Price setting of feedstock
• Assist small scale farmers to acquire technology and services
• Provide an avenue for lobbying
• Monitoring and evaluation.

Petroleum Institute of East Africa (PIEA)


PIEA was launched in 199 and has corporate, individual and associate membership of
players in the petroleum industry. Its mission is to provide a forum for expertise and
excellence in the oil industry in the East African region with the aim of promoting
professionalism and free enterprise in petroleum business supported by the highest
business and operating standards, adherence to Environment, Health and Safety ideals.

Kenya Private Sector Alliance (KEPSA)


Kenya Private Sector Alliance (KEPSA) is the umbrella body of the private sector. It exists to
pursue an enabling business environment, policies and laws for the large as well as the
micro, small and medium size enterprises.

Kenya Renewable Energy Association (KEREA)


KEREA was formed in 2002 when members of the Renewable Energy Resources Technical
Committee at the Kenya Bureau of Standards realized the need for an industry association
comprising of businesses involved with renewable energy, consultants, educational
institutional staff, government institutions and individuals. Objectives of KEREA include:
• To promote the interests of members of the renewable energy industry, Donor
organizations, NGOs, General etc.

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• To create increased public awareness in renewable energy.


• To assist the Government and industry on all issues related to renewable energy.
• To promote better business practices and professionalism in the sector.
• To apply for, acquire and hold charters, Acts of Parliament, privileges,
monopolies, licenses, concessions, and patents or other rights or powers from
the Kenya Government or local authority or any other statutory body.
• To protect the consumer of Renewable Energy products by encouraging
conformity with standards and safety of components and systems.

Parliamentary Network on Renewable Energy and Climate Change (PANERECC)


PANERECC was established by Members of the Parliamentary Committee on Energy,
Communications and Public Works in December 2006 to promote New and Renewable
Energy (NRE) as a tool for combating climate change and ensuring development using
sustainable pathways. It is open to all Members of Parliament with an interest in cleaner
technologies, renewable energy, the environment and sustainable development. Associate
membership is allowed for members of the public from private sector, civil society and
multilateral organizations. The purpose of PANERECC is to ensure that parliamentarians are
educated and better informed on the need for improved energy policy instruments and legal
frameworks that address climate change mitigation as well as adaptation and that foster the
accelerated development of renewable energy.

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9.12 Links in Biofuels Development in Tanzania

Legislative, Policy & Funding Oversight and Regulatory Bodies

Office of the Prime


Ministries: MOA, Minister
MOF, MEMR, MOL, KIA
MOI, MOT, MOInd, KEBS
NEMA
Ministry of Energy
NTFADGE KEPHIS
Directorate of Renewable
KSB
National Biofuels Committee
PANERECC

INGOs, e.g. UNDP, Biofuel Projects/Programmes


ICRAF

KBA
Large Scale Investors
(Feedstock
KEREA Farmer Production/Processing
Cooperatives/Self
Help Groups
PIEA
Outlets for
Processed
KEPSA biofuels

NGOs/CBOs
KSPA Outgrower
Farmers

Advocacy & Extension Support Implementation

Key:
Government office performing both policy development and oversight functions – Prime Minister’s
Government Line Ministries, Parliamentary Committees and Taskforces responsible for policy development & securing funding
Autonomous Government Agencies performing regulatory and oversight functions including licensing and compliance
International Agencies providing support to Government programmes through funding and capacity development
Industry representative bodies and NGOs responsible for advocacy and extension services to farmers and industry
Investors and farmers responsible for actual implementation of biofuel projects including growing and processing
Various biofuel programmes and initiatives being implemented by various entities

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Legend

CBO - Community Based Organization MEMR – Ministry of Environment & Mineral


ICRAF – International Centre for Research in Resources
Agroforestry (World Agroforestry Centre) MOA – Ministry of Finance
INGO - International Non-Governmental MOI – Ministry of Immigration
Organization MOInd - Ministry of Industrialization
KBA - Kenya Biodiesel Association MOL – Ministry of Lands
KEBS – Kenya Bureau of Standards MOT - Ministry of Trade
KEPHIS - Kenya Plant Health Inspectorate NEMA -National Environment Management
Service Authority
KEPSA - Kenya Private Sector Alliance NGO - Non – Governmental Organization
KEREA - Kenya Renewable Energy NTFADGE – National Task Force for Accelerated
Association Development of Green Energy
KIA – Kenya Investment Authority PANERECC – Parliamentary Network on
KSB - Kenya Sugar Board Renewable Energy & Climate Change
KSPA - Kenya Sugar Producers Association PIEA – Petroleum Institute of East Africa
UNDP - United Nations Development Programme

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9.13 Summary of the biofuels activities implications in Kenya

FARM INDUSTRY MARKET

About 20% of the land is In nascent stages but there Mainly transport industry and
suitable for cultivation, currently exist many initiatives stationary applications. Some
predominantly for subsistence mainly ethanol and biodiesel domestic uses for SVO (cooking &
farming lighting)

• Limited land. • Insufficient feedstock supply • Competition for ethanol for


• 98% of the farm holdings are small • Few processing facilities beverage use.
(<10 ha) hence cannot support • No technical capacity • Unsustainable pricing
sustainable feedstock production. • Economic feasibility still not assured • Prices of potential feedstocks not
• Problems with sugar farming • Poor infrastructure and inefficiency based on their sale for biofuel
Issues
• Maize, a potential ethanol in production hampers growth manufacture, but for other more
feedstock is the staple food and is • Ethanol produced from sugar ‘conventional’ uses
in short supply molasses in stand-alone facilities • Market for biofuels is still in its
• 60% of farming systems is rather than as an integrated process infancy
subsistence with sugar manufacture – more
• Food insecurity costly
• Agriculture policy aims to increase • Establishment of Tax incentives – tax • Establishing financing partnerships
productivity and income growth holidays and fiscal incentives for with the private investors
and enhanced food security and green energy investment • Diversify the sugar industry base and
equity • Build and strengthen research strengthen competitiveness of sugar
• Agriculture, Energy, Forest, Draft capacity factories
Policies
Environment propose sustainable • Promote CDM and carbon trade • Achieve blending ratio of E-10
biofuel feedstock production (bioethanol with petrol) by
December 31st 2010
• Promoting the utilization of
renewable energy sources for power
generation or transportation
• ICRAF, other NGOs and companies • Initiative for the Promotion of • National Biodiesel Committee with
working with farmers to promote Biomass lead by the Institute for membership of petroleum industry,
jatropha Research in Sustainable Energy and line ministries, NGOs and
• Focus on jatropha castor, croton Development (IRSEAD) agricultural producers.
and coconut as biodiesel feedstock
Emerging Patterns/ • Biodiesel strategy
• Kenya Forestry Research Institute
relationships conducting research on various • Bioethanol strategy
species to evaluate biodiesel • National Task Force on Accelerated
potential. Development of Green Energy
• Active participation in R & D and
actual feedstock production
• Opportunities to provide farm jobs • Growth in agro-industrialization • Straight Vegetable Oil for lighting
• Environmental benefits of using • Huge investments needed in and cooking to substitute kerosene,
biofuels treatment plants to ensure firewood and charcoal.
Impact/ future • Expanded income through compliance with water quality • Integrated ethanol production to
adoption of new cash crops. standards. increase efficiency and lower costs
implications
• Irrigated feedstock production to • Private-sector-led development • Diversify the sugar industry base and
create more demand for water strengthen competitiveness of sugar
factories

9.14 Conclusions

The case of Kenya is most relevant as has been producing bioethanol for nearly 20 years.
The production has not been steady and tends to be exported for drinks to its neighbouring
countries. It has been reported that land will not be sufficient to produce the amount of
ethanol needed for the transport sector in Kenya. Nevertheless, alternative crops have been
considered that do not compete with food or can produce both food and fuel (e.g. sweet
sorghum, jatropha, castor oil). With the experience already in place and the different policy
mechanisms (e.g Task Force, Biofuels Programmes) it is possible that Kenya could produce

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biofuels in adequate areas that do not jeopardise food production in the country and do allow
to rural development and a better income to the country.
Positive impacts can be expected at local level with job creation in some areas where
conflict with other resources (such as water) is not an issue.

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10. ZAMBIA CASE STUDY

10.1. Country’s Characteristics

Location
Zambia occupies a near central location on the southern African sub-continent between 70
30’ and 180 45’ south latitude, and 220 00’ and 330 30’ east longitude. It is surrounded by the
Democratic Republic of Congo in the north, Tanzania in the northeast, Malawi and
Mozambique in the east, Zimbabwe, Botswana and Namibia in the south, and Angola in the
west. It is divided into nine provinces. Lusaka is the capital and largest city (Figure 10.1).

Figure 10.1: Map of Zambia showing surrounding countries, provinces, population nodes,
transport infrastructure, and main topographic features (UN, 2004).

Geographical characteristics
Zambia covers an area of 752 614 km2. Most of the western and central regions of the
country are situated on the great plateau of central Africa. The plateau rises eastward from
915 to 1 520 m.a.m.s.l. and has an average altitude of 1 200 m.a.m.s.l. A faulted escarpment
zone known as the Muchinga Mountains, traverses most of Northern Province. Its highest
point is 2 170 m.a.m.s.l. North of the escarpment the topography is dominated by the
Bangweulu swamps, Lake Bangweulu, Lake Mweru Wantipa, the eastern half of Lake
Mweru, the southern extremity of Lake Tanganyika, and the Chambeshi River valley. East of
the escarpment towards the border with Tanzania and Malawi, the land rises to over 1800
m.a.m.s.l. South of the escarpment the deep rift trough of the Luangwa River dominates the
area. Most of the western part of the country is drained by the Zambezi River and its
tributaries. The river forms most of Zambia’s southern boundary with Zimbabwe. Key
features of the river include the Victoria Falls, the Kariba Dam and the deep rift trough of the
Middle Zambezi Valley. Most of central Zambia is drained by the Kafue River and its
tributaries (Aregheore, 2003, FAO, 2005). The Kafue is dammed above a gorge just south of
Lusaka. The country has a further 1 700 medium to large concrete dams as well as about

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3000 small earth dams. The lakes, dams, and rivers comprise a water surface equivalent to
1,6 % of the country’s total area. Expansive wetlands, covering almost 5% of the country’s
total area, are located on the alluvial plains of the main rivers. The Kafue Gorge Dam, Lake
Kariba and Victoria Falls are equipped for hydroelectric power generation and generate
more than 90% of the country’s electricity (Batidzirai et al., 1998).

Zambia’s subtropical climate is characterized by three distinct seasons (1) The cool dry
season from May to August when maximum temperatures range from 16°C to 21°C and
frost occurs in the high altitude areas, (2) The hot dry season from September to November
when maximum temperatures range from 27°C at high altitude, to 38°C in the river valleys.
During both these dry seasons rainfall is minimal or absent, and relative humidity averages
40%. (3) The rainy season extends from late November to April with December, January and
February being the wettest months. Although maximum temperatures during this season
average 21°C, relative humidity is generally high. The distribution of moisture-laden winds
driven into the country by the Inter-Tropical Convergence Zone is predominately influenced
by changes in altitude and latitude. The country as a whole receives a mean annual rainfall
(MAP) of 1 020mm. However, the MAP increases from 750mm in the southern region, to
between 900 to 1 200mm in the central region, to 1 400mm in the northern region. In the
latter, heavy rains may fall for 15 to 24 days per month during the rainy season (Chapman
and Walmsley, 2003; FAO, 2005).

Figure 10.2: Relative importance of Zambia’s economic activities in 1996 (Europa


Publications, 2010).

Agriculture is Zambia’s second most important economic activity (Figure 10.2). About 70% of
the country’s economically active population is employed in the agricultural sector as
compared to 7 % in industry and 23% in services (ECZ, 2001). In 1997/98, crop failure due
to flooding in the northern region and due to drought in the southern and western regions as
well as considerable loss of livestock , saw the country’s growth rate plummet from + 7% in
1996/97 to -2%. Good weather and good crop harvests during 1998/99 and 1999/2000, saw
the growth rate recover to almost + 4%. As Chapman and Walmsley (2003, pg. 6) note the
country’s “economic performance is closely correlated to agriculture, which, in turn, is
critically dependent on weather conditions”. This close correlation does not bode well for the
future. According to GEF (2008), the later onset and earlier cessation of rains, the increased
frequency and spatial extent of droughts and floods, and the occurrence of droughts during
the rainy season, experienced since the late 1980s are due to climate change. These trends
as well as an increase in temperature, are likely to become more prevalent. From 1988
onwards, the total area under cultivation and the total agricultural production declined. In
addition to repeated droughts and floods, and loss of work oxen making farming
unpredictable and risky, these decreases can be ascribed to the early 1990s removal of
subsidies on agricultural inputs that forced most smallholder farmers to stop applying

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chemical fertilizers. There has been a significant switch from cultivating maize as the main
food crop, to cultivating drought resistant food crops that require less fertilizer such as
sorghum, cassava, millet, groundnuts and tubers (SIDA, 2004; Perret, 2006). Perret’s (2006)
assertion that maize is no longer a suitable crop for Zambia’s bioclimatic and socioeconomic
conditions, is substantiated by GEF’s (2008) predictions of average yield decreases of 66%
for rainfed maize and 16% for irrigated maize, under the most probable climate change
scenario applicable in the country in 2030.

Environmental Characteristics
Zambia has four major vegetation categories. Closed forests covering 6% of the country are
restricted to the higher rainfall regions. Savanna woodlands cover 64% of the country and
are predominately classed as Miombo woodland. The tree component of the woodlands
range from sparsely scattered in the drier south to tall dense tickets in the moister north and
northwest. Although Termitaria (anthill vegetation) is distributed throughout the country, it
only covers about 3 % of its area. Grasslands cover 27% of the country and range from
those found in the drier south to those associated with wetlands, to open grassy plains the
high eastern escarpments. Deforestation is proceeding at the rate of about 200,000 ha per
year. Coupled with overgrazing, it has contributed to severe soil degradation (ECZ, 2001,
Aregheore, 2003). Approximately 30% of the land surface has been altered for agriculture,
forestry and settlements (Chapman and Walmsley, 2003).

On the basis of the combined influence of rainfall, temperature, altitude, topography and
soils, on the length of the growing season and hence crop options, Zambia is divided into
three major agro-ecological zones (Figure 10.3).

Figure 10.3 Map showing Zambia’s three major agro-ecological zones (ECZ, 2001).

Zone 1 includes the major river valleys in the southwest, south, and southeastern parts of
the country which experience very high summer temperatures and are prone to flooding. For
the zone as a whole, MAP is 750 mm, the risk of drought is medium to high, the growing
season is short (80 to 120 days), land degradation is widespread and the fertility of the soils
is low. In addition, the soils are either characterized by an impermeable clay horizon which
dependent on depth can make them difficult to plough and prone to cracking when dry, or a
high sodium and base content which renders them highly erodible. Most of this zone has a
poor agricultural potential

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Zone 2 covers most of the central full extent of the country. It has a MAP of 800 to 1 000
mm, a growing season of 100 to 140 days and a medium to low risk of drought. In the
Western Province on both the plateau and Zambezi flood plain infertile, weakly developed,
sandy soils predominate. The soils in the central and eastern parts of this zone generally
have a better texture, structure and fertility status. The zone does have a severe water deficit
during several periods of the cropping calendar. Although 87% of this zone has a good
agricultural potential only half of it is accessible for this purpose. The balance has been set
aside for national parks, game management areas and forests.

Zone 3 covers the full extent of the northern part of the country and is the largest zone. MAP
ranges from 1 000 to 1 400 mm, and drought risk is low. However, frosts are prevalent at
high altitudes and floods at low altitudes, and the soils are generally highly leached and
acidic. About half the zone has a good agricultural potential (ECZ, 2001; Aregheore, 2003;
SIDA, 2004; FAO, 2005).

10.2. Population characteristics

Over the past three decades Zambia’s population has more than doubled from 5, 7 million
people in 1980 (UN-HABITAT, 2005) to 12 million people in 2009 (DFAT, 2009). Population
growth rates are however declining from the peak of 3,1 in the 1970s, to 2,7 in the 1980s, to
2,4 in the 1990s (UN-HABITAT, 2005), to 2,1 from 2000 to 2006 (CSO, 2007). In 2000, the
average population density (inhabitants/ km²) in the agro-ecological zones 1, 2 and 3, were
3, 11 and less than one, respectively (SIDA, 2004). The population densities of Lusaka and
Copperbelt provinces where people are concentrated in urban, industrial and mining centres
and along the major transportation corridors are 65 and 53, respectively. In 2000, 44% of
Zambia’s population lived in these concentrated areas. Although the population is comprised
of an almost equal number of males and females (CSO, 2001), 65% of the rural population is
female (SIDA, 2004).

The 2000 census revealed that 20% of urban households were headed by women and that
45,5% of them were widowed. The average household size was five people. While 49% and
38% of them had access to safe water and garbage disposal respectively, only 15% and
16,7% had access to safe toilets and electricity, respectively. Wood for cooking and
kerosene for lighting was used by 60,9% and 50% of the households, respectively (CSO
2001, UN-HABITAT, 2005).

In 2002, 45,6, 53,7 and 2,3 % of Zambia’s population was less than 14 years of age,
between 15 and 64, and over 65, respectively (UN-HABITAT, 2005) By 2004, 21,5% of
Zambians were HIV positive or had AIDS – 60% of whom were women aged between 15
and 49 years, and over 100 thousand people had already died from the pandemic (UN-
HABITAT, 2005). According to UNDP (2007) there were 845 546 children orphaned by AIDS
in 2006, and this figure was projected to increase to 936 167 by 2010. HIV infection rates as
well as life spans of people with AIDS, are however improving. CSO (2001) noted that life
expectancy in Zambia rose from 47 years in 1990 to 50 years in 2000. During this decade it
has remained about 50 years (UNDP, 2007).

10.3. Gross Domestic Product, Human Development Index and Poverty Levels

When Zambia gained independence in 1964, it was a middle-income country with copper
responsible for approximately 80% of export earnings. During the 1970s and early 1980s its’
Human Development Index (HDI) grew slowly. Then, copper lost almost half its value on
world markets resulting in a rapid reversal of the HDI to the extent that the 1995 value was

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less than the 1975 value (UNDP, 2007). In addition to increasing poverty, the country
experienced increasing disparities between rich and poor (Chapman and Walmsley, 2003).
Between 1989 and 2000, 56,5% of Zambia’s income was distributed amongst the country’s
richest 20% of the population. By contrast only 3,3% was distributed amongst the poorest
20% of the population. Through until 1991 when the Movement for Multiparty Democracy
Government (MMD) took office, Zambia’s economy was state-dominated and crippled by a
lack of investment. The MMD abolished foreign exchange controls and subsidies on locally
produced products and imports. It also embarked on a programme to privatize most
government-owned copper mines thus freeing itself of enormous industry losses as the
value of the metal continued to dip (Chapman and Walmsley, 2003). Although conditions
were improving, in 2000 only 42% of Zambians were generating an income and most of
them were doing so on an informal basis in the agricultural sector (UNDP, 2001). By 2004,
64% of Zambians were still living on less than the poverty threshold of US$ 1/day (UN-
HABITAT, 2005). Comparing poverty in 1991 and 2004, Bigsten and Tengstam (2008)
found that it decreased in rural areas from 88% to 78% but increased in urban areas from
49% to 53%. They attribute this to the greater diversity of income opportunities available to
rural households.

Since 2004, copper output has increased steadily due to a recovery of the value of the metal
and increased foreign investment. In 2005, Zambia acquired US$ 6 billion in debt relief
under the Highly Indebted Poor Country Initiative. In 2007, Zambia experienced a bumper
harvest which boosted the GDP and agricultural exports. As is evident from Table 1, from
2004 to 2008 Zambia experienced strong growth with real GDP growth of about 6% per
year, single-digit inflation, a relatively stable currency, decreasing interest rates, and
increasing levels of trade. The weaker 2009 values given in Table 1 are IMF projections
based on the world recession driven decline in commodity prices and the fact that elections
were destined for 2009. Zambia’s HDI (0,481) in 2007 was finally better than in 1975 (0,448)
when it was first estimated (UNDP, 2007, DFAT, 2009).

Table 10.1 Zambia’s Economic Indicators (adapted from DFAT, 2009)

1995a 1999b 2004 2005 2006 2007 2008 2009


GDP (US$bn) current prices 5.4 7.3 10.9 11.4 14.7 12.3
GDP PPP* 12.4 13.4 14.7 16.1 17.4 18.5

GDP per capita (US$) 240 232 480 627 917 990 1, 248 1,027
GDP per capita PPP*(US$) 1,099 1,159 1,2422 1,399 1,482 1,544

Real GDP growth** -3 2 5.4 5.3 6.2 6.3 5.8 4.5

Inflation ** 46 21 18.0 18.3 9.0 10.7 12.4 14.0

* Purchasing power parity


** (% change yoy)
a from Chapman and Walmsley (2003).
b from UN-HABITAT (2005).

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10.4. Food security

Zambia has a serious food security problem. Chiwele’s (2005) analysis of the period from
1989 to 2004 revealed that the country’s total annual production of cereals, and roots and
tubers, consistently failed to meet the national market demand, while maize production was
only capable of meeting this demand in 2003 and 2004, and exceeding it in 1989, 1993 and
1996, when the surplus was exported. Focusing on cereals over the period from 1999 to
2003, Chiwele (2005) gave the following statistics in 10-3 metric tonnes :- domestic
requirement = 1 467, production = 1 095, imports = 111, and food aid = 71, showing that
there was a shortfall of 190 or 12,9% between supply and demand. Chiwele (2005) cited a
1998 malnutrition survey of children under the age of five which found 53% were stunted,
26% were under weight and 5% were wasted, as well as a household survey carried out in
August 2003 which found 34% had run out of staple food, and 20% would run out within a
month. BiofuelWatch (2006) attributed the survival of 1.1 million Zambians in 2005 to food
aid.

The reasons for Zambia’s persistent food security problem are multifaceted and dynamic,
and evidently unrelated to the availability of arable land and water. In 2003, only 5.3 million
ha of land was cultivated out of 35.4 million ha of potentially arable land. Likewise, only 46
400 ha were irrigated out of 523 000 ha with irrigation potential (Aregheore, 2003; BOZ,
2003). Estimates of potential arable land vary with Biopact’s (2006) 58 million ha, the highest
found in the literature used.

As noted in section 1.2 and evidenced in Figure 4, from the early 1990s onwards the area
under maize production contracted in favour of other staples like cassava, sorghum and
millet, and export crops such as cotton, tobacco and paprika. Despite mostly using improved
varieties, in the absence of fertilizers average small holder farmers’ maize yields were low
(0.5 to 1.0 t ha-1 ). In 2006 and 2007, maize production recovered due to good rains, the
resumption of fertilizer subsidies and large-scale government maize procurement through
the newly reconstituted Food Reserve Agency (Dorosh et al., 2009). Average small holder
farmers’ maize yields increased to 4.0 t ha-1. Government breeders released their first wave
of highly productive new cassava varieties in the early 1990s, rapidly doubling the production
of the crop. However, IITA (2007) note that it’s performance could be even better. Pests,
disease, late and insufficient weeding, and other poor cultural practices reduce its potential
yields by as much as 50%.

Figure 10.4: Production trends in food staples in Zambia (Dorosh et al., 2009).

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As a consequence of the release of several new cultivars of sweet potatoes, there has been
a rapid increase in their production over the past decade (Dorosh et al., 2009). Improved
varieties of sorghum and millet have been widely and increasingly adopted by all categories
of farmers since their initial release in 1989. Although they perform better than maize under
water stressed conditions and poor soils, they are more vulnerable to destruction by birds.
Small holders generally grown them for home consumption and maize for cash income
(even during droughts) because opportunities for them to market these crops are not as
good as they are for maize (SIDA, 2004). Edible caterpillars of the Emperor moth
(Saturniidae) picked from Miombo woodland play a significant role in ameliorating rural
livelihoods. A substantial proportion of the harvest is dried and sold in urban centers. Crop
residues and agro industrial by-products such as molasses, brewer’s grain, bone and fish
meal, etc. play an important role in the nutrition of ruminant livestock (Aregheore, 2003,
FAO, 2005).

10.5. Main Crops: Production, Imports/Exports.

In 2003, the agricultural sector’s contribution to the gross domestic product (GDP) was 21%
while 2% of the export earnings originated from agriculture (SIDA, 2004). Small holder farms
- most of which are female headed – produce most of Zambia’s food and a substantial
proportion of its cash crops. The figures in brackets are SIDA’s (2004) estimates of the
proportion of the country’s total production contributed by women - millet (95%), cotton
(95%), sorghum (85%), groundnut (75%), maize (65%) and sunflower (55%).

Table 10.2. shows the typical crops grown in Zambia’s three agro-ecological zones listed in
decreasing order of potential and priority (adapted from Chalabesa et al., 1999).

Type of crops Zone 1 Zone 2 Zone 3


Staple crops 1. sorghum 1. maize 1. maize
2. maize 2. sorghum 2. cassava
3. Pearl millet 3. cassava 3. Finger millet
4. cassava 4. Pearl millet 4. sorghum
Food legumes 1. groundnut 1. groundnut 1. bean
2. cowpea 2. bean 2. groundnut
3. Bambara nut 3. Bambara nut 3. Bambara nut
4. cowpea 4. cowpea
5. Pigeon pea
6. Chick pea
Cash crops 1. cotton 1. soybean 1. soybean
2. soybean 2. wheat 2. wheat
3. sunflower 3. cotton 3. exotic vegetables
4. exotic vegetables 4. exotic vegetables. 4. rice
5. wheat 5. sunflower 5. sunflower
6. rice 6. rice 6. potato
7. castor 7. tobacco 7. spices
8. spices
9. flowers
Plantation crops 1. fruits 1. sugar cane 1. fruits

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2. sugar cane 2. fruits 2. pineapple


3. cashew 3. coffee
4. sugar cane
5. oil palm
6. tea

Zambia’s main exports are copper and cobalt. However, since 1991 it has increasingly
exported electricity, copper rods, gemstones and cement as well as the following agricultural
produce: tobacco, sugar, beer, fruit juices, cold drinks, cotton, cotton yarn, cut flowers,
specialty vegetables, spices, coffee, bone and fish meal, and live fish. Its main export
partners are the UK, Switzerland, Tanzania, Zimbabwe, South Africa, The Netherlands,
Germany and Australia. Since 1991, Zambia has been a net importer of goods. Its main
imports are crude oil and fertilizer. Other significant imports include mining equipment,
machines and their component parts, transport equipment and parts, motor vehicles and
electricity. Dairy products and processed foods are routinely imported. As noted in section 4,
dependent on domestic production maize, cereals etc are periodically imported. The main
imports partners are the UK, UAE and South Africa. Goods are also imported from Saudi
Arabia, Japan, and Malawi (DFAT, 2009).

10.6 Characteristics of Livelihoods

According to SIDA (2004) and FAO (2005) Zambia has four categories of farmers:-
(1) small holders: 75% of the farmers are subsistence producers of staple foods on
farms ranging from 0,5 to 9 ha. Although they only market an occasional surplus,
they account for 51% of the agricultural GDP.
(2) emergent farmers: 20% of the farmers produce food and cash crops on farms
ranging from more than 9 to 20 ha,
(3) medium scale: about 4% of the farmers produce food and cash crops on farms
ranging from more than 20 to 60 ha. Together with the emergent farmers, they
produce 25% of the agricultural GDP.
(4) large scale: constituting less than 1% of the farmers and numbering less than 800
individuals or companies, these farmers grow cash crops on farms larger than 60 ha.
Together with the medium scale farmers, they are commercial farmers characterized
by high mechanization and have a well organized farmer network which facilitates the
acquisition of inputs.

Prior to independence 6% of Zambia was Crown Land and 94% Reserves and Trust Land.
In 1964, the Crown Land became State Land and it was nationalized requiring State consent
for all dealings. This requirement hampered development of unused land. In 1991, the MMD
reintroduced the economic value of undeveloped land and the right of private land
ownership. The Reserves and Trust Land became Customary Lands where the community
owns all the land on behalf of its members, and the consent of the Chief is required to settle
in the area (UN-HABITAT, 2005). Most small holders have customary land use rights Most
land in opened-up areas is occupied but unexploited agricultural land, which is generally
distant from where minimal infrastructure is developed, still remains unoccupied (FAO,
2005). The Commissioner of Lands attached to the Ministry of Lands is responsible for
granting State Land. However, the Ministry of Agriculture and Cooperatives is responsible for
identifying, planning, demarcating, and recommending land for agriculture purposes, as well
as monitoring land use change (UN-HABITAT, 2005).

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10.7 Policies Linked to Bioenergy Sector

According to Mr Oscar Kalumiana the current Director of the Department of Energy (DE)
(Kalumiana, 2009), Zambia’s Government is committed to ensuring environmentally
sustainable exploitation of biomass resources in order to (a) secure supplies and stabilize
prices of transport fuels, (b) increase investment in the agricultural sector, and (c) contribute
to socioeconomic development. While the DE’s specific policy goals in respect of biomass
resources are (a) to improve the management of woodlands for sustainable firewood
production, (b) to improve the efficiency of charcoal production, and (c) to promote
alternatives to firewood, the Department recognizes that conditions in the country are
favourable for the development of the bioenergy sector. The DE attributes the current
dependency of the country on food imports to the lack of infrastructure and investment in the
agricultural sector, and perceives bioenergy as an excellent opportunity to significantly
enhance the production potential of feedstock for both food and biomass production. The DE
is initially focusing on transport rather than electricity, and plans to introduce biodiesel to be
used straight or blended with diesel, and ethanol to blend with petrol. Biofuels are defined as
‘fuel’ and regulated under the Energy Regulation Act of 2008. The Ministry of Energy and
Water Development is developing a long-term strategy (2009 – 2030) which includes
biofuels as a priority sub-sector, and which foresees close cooperation between the DE and
the Environmental Council because Environmental and Social Impact Assessments (ESIA)
will be required for bioenergy projects.

The most recent policies or Acts of the following Ministries/Departments were scanned for
reference to the use of biomass, crops or trees for bioenergy, biofuels, or electricity:-
Agriculture, Food and Fisheries - Agriculture and Cooperatives; Environment, Natural
Resources and Tourism; Forestry; Lands; Mines and Mineral Development; Transport; and
Commerce, Trade and Industry. None was found.

10.8 Biofuels Development Status

Research
Under the leadership of Professor Francis Yamba, the Centre for Energy, Environment and
Engineering (CEEEZ) and the University of Zambia, assessed the performance of 9 varieties
of sweet sorghum as a supplementary feedstock to ethanol production. The research was
carried out in association with Dr Jeremy Woods of the Porter Institute and ICEPT, at
Imperial College, London. Between 2004 and 2007, trails of these varieties were monitored
on 8 small holder farms distributed across all three agro-ecological zones, at Kafue Sugar,
and at the University research farm. Similar yields were obtained in Zone 1 and 2. Stem
yields in Zone 3 were poor and this was attributed to the acidic soils and the lower number of
sunshine hours. The highest sugar contents were obtained with Wray, Keller, GE2 and TS1,
and lowest with Madhura. GE2, Praj-1 and GE3 should be grown by commercial farmers as
they were the most responsive varieties to input applications. Yield differences between sub-
optimal and optimal input applications, and across different environments were insignificant
with Sima and Wray, suggesting they are best suited low-resource farmers (Woods, 2007).
Takavarasha et al’s (2005) feasibility study for the production and use of biofuel in Zambia
found that the area needed to be put under biofuel feedstocks in order to meet the domestic
biofuel demand was equivalent to 4% of the area already under crops, 1,3% of the country’s
potentially arable land, and 0,27% of the country’s total land surface.
Von Maltitz and Brent (2009) estimated that Zambia needed to put 56 286 ha under biofuel
feedstocks in order to meet their biofuel targets. This represents
4 % of the country’s arable land, 6 % of its available arable land and 0.8 % of its total land
area.

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Walimwipi (2009) asserts that policies and business decisions required for biofuels
implementation strategies are influenced by various and complex factors. The policymakers
need to ensure that the environmental and socio-economic sustainability of the biofuel
production, while those involved in the biofuels production chain want a meaningful return on
their investments, as well as incentives to compete with gasoline and diesel fuels.
Recognizing the need for an objective mechanism to guide the decision –making process,
CEEEZ used an Integrated Decision Support Tool (DST) to assess the economic
performance of different feedstocks for ethanol and biodiesel production. The DST was
developed by UNIDO and technical support was provided by the German Biomass Research
Institute. Sweet sorghum, sugarcane and maize were competitive at 50, 60 and 80 US$/
barrel, respectively. However, to produce 20 million litres of bioethanol per annum from
maize requires 24 000 ha of land, as compared to 5 000 ha for sweet sorghum and for
sugarcane. Apart from being the most competitive in production costs, Jatropha also
requires less land than sunflowers, and substantially less than soya beans.

Implementation Progress

In November 2005, D1 Oils – a UK based company – established a partnership with the


Zambian Government to plant 15 000 ha of Jatropha curcas in northern Zambia. The
company provided farmers with tree seedlings, assisted in arranging finance for them to
cover other planting costs, entered into a contract with them guaranteeing to buy their seeds,
and continues to provide extension advice (Anon, 2005). In June 2006, D1 Oils was
allocated 155 000 ha for planting (Anon, 2006). By June 2007, D1 Oils had established a
managed plantation of 2411 ha, had contract farming taking place on 20 760 ha, was
pleased with the performance of the trees and was on-track with its’ plans to expand (Le
Roux, 2007). Unfortunately, the company has not responded yet to several requests for an
update on its current status.

Marli Investments – a Zambian company – initiated a Jatropha out-grower scheme near


Kabwe and using cuttings, seeds and seedlings from trees already growing in the country,
commenced planting in November 2004. As of November 2009, the company had distributed
over 12 million seedlings and seeds to 25 000 out-growers at schemes covering 18 500 ha
set up throughout the country. All seed yields to date have been used to extend the planted
areas. As with D1 Oils, Marli Investments has entered into a contract with the out-growers
guaranteeing to buy their seeds, and provides ongoing extension advice. Marli Investments
planned to commence constructing a 600 000 tons per year biodiesel production plant in
2009 to be operational by 2011. Unfortunately, with the global recession it has been unable
to attract the necessary funding to implement this plan (Desai, 2009).

10.9 Crops Used for Biofuels

Table 10.3: shows the 2004 production status of potential biofuels feedstocks in Zambia
(Takavarasha et al, 2005).

Crop Area cultivated ha Yields mt Kg oil/ha L oil/ha


Sunflower 26 000 8 000 800 952
Soyabean 15 000 15 000 375 446
Maize 750 000 1 161 000
Sorghum 22 000 19 000
Sugarcane 17 000 1 800 000
Cassava 165 000 950 000

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Jatropha 1 590 1 892


Oil Palm 5 000 5 950

10.10 Implications of Biofuels Production on Water and Employment.

In areas where the MAP is greater than 800 mm rainfed sugar cane production is
economically viable. The same applies to sweet sorghum where the MAP is greater than
600mm. However, irrigation substantially improves the yields of both crops (Watson et al.,
2007). The survival rate of Jatropha seeds, seedlings and cuttings is substantially improved
if they are watered for the first three years (Mudede, 2010). Given that Aregheore (2003) and
BOZ (2003) estimated that less than 9% of the land with irrigation potential was irrigated (as
noted in section 4), it would appear that Zambia can withstand a substantial production of
biofuel feedstocks even under irrigated conditions, without detrimentally affecting national
water availability.

Biofuels production is likely to generate employment in both the informal and formal sectors.
Von Maltitz and Brent (2009) estimated that Zambia would create 27 046 jobs in meeting its
biofuel targets. However, they cautioned that “fuel production must provide jobs of sufficient
quality to ensure that workers are able to achieve security through their remuneration from
biofuel endeavours”.

10.11 Stakeholder Roles and Views

Against Biofuel Developments in Zambia:


(1) Scott (2009) representing Practical Action a UK based NGO, claims that investors
are levying charges for extension services and scheme membership fees, and that
growers have to pay to replace trees that die.
(2) ABN (2007) noting that the Zambian Commission for Catholic Justice and Peace
concluded that for most farmers growing tobacco and cotton, the outgrower schemes
have perpetuated or increased poverty, questions whether Jatropha outgrower
schemes will not be any different.
(3) Biofuelwatch (2006) falsely claims that D1 Oils plans to have the Jatropha seeds
grown in Zambia, processed into oil in South Africa for export to the European Union.
(4) Sibanda (2006) quotes Clement Chipokolo of the Participatory Ecological Land Use
Management Association as saying "The increase in this type of plantation
production will certainly affect the already unstable food production in Zambia where
farming and food crises are common. Zambia will have to choose between feeding its
population… or its ever growing number of cars and industries".

In Favour of Biofuel Developments in Zambia:

(1) Takavarasha et al. (2005) reported that Ministry of Agriculture was fully supportive of
biofuels as an alternative market for crops, and believed that the seed industry and
investment in irrigation would benefit from biofuels.
(2) Sibanda (2006) quotes Dr Judith Lungu – the Dean of the School of Agriculture at the
University of Zambia as saying "I never saw cotton replace maize, so I think the
farmers will continue to grow food alongside their Jatropha crops".
(3) The National Association for Peasant and Small-Scale Farmers of Zambia (2006)
urged small-scale farmers to start growing biofuel crops in order to reduce rural
poverty and cut energy costs.

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(4) The Biofuels Association of Zambia (2007) asserts that Jatropha cultivation creates a
positive reciprocity between raw material/energy production and environment/food
production. They refer to this reciprocity as the Jatropha System, and conceive of it
as having four equal aspects: Renewable energy, Erosion control, Women promotion
and Rural Income.
(5) Sinkala (2009): notes that Zambia’s mine dumps cover a total area of more than
10,000 Km2 and asserts that Jatropha should be used to rehabilitate them. Doing so
would generate huge income. He goes on to suggest that deforestation in the country
could be abated by engaging communities to make charcoal from Jatropha cake. He
is adamant that biofuel crops have not and will not adversely effect food security in
Zambia.
(6) Desai (2009) points out that small holder farmers who have become part of Marli
Investments’ Jatropha outgrower schemes, have not used any of the land on which
they grow their food crops. While the land that they have used for Jatropha may have
previously been used for grazing or collecting fuelwood etc, because planting
Jatropha does not involve total land clearance, these activities can continue to some
degree thereafter. He also claims that many have already benefited from the
additional income from the sale of their seeds.
(7) Von Maltitz and Brent (2009) concluded Zambia has the potential to meet all local
liquid fuel needs as well as supporting an export market of fuels and food. The fact
that there is both available land and the ability to intensify food production would
seem to indicate that there would be limited competition between food and fuel,
provided that fuel production does not displace current food production.

10.12 Links in biofuels development in Zambia


1. Local Chief
2. Other community reps
3. Existing Community reps
4. Existing Outgrower Scheme Producers
Customary •Sugar Companies
State
Lands •Marli Investments Lands
•D1 Oils
•Individual Commercial farmers
•Commercial Farmer Associations
•Individual Outgrower Schemes
Women's •Outgrower Scheme Associations
•Other National/Foreign Investors •Ministry Agriculture, Food and Fisheries –
Groups Agriculture & Cooperatives
•Ministry of Legal Affairs
•Ministry of Lands- Commissioner of Lands
•Ministry of Energy & Water Development
Environmental •Ministry Environment, Natural Resources &
Tourism - Environmental Council of Zambia
Social Impact
Assessment
NGO’s
Industry
Biofuels Assoc. of Zambia
 CEEEZ
University of Zambia
•Petroleum refinery
Copperbelt University Govt Depts •Sugar Companies
Zambia Forestry College
•Mining Companies
Environmental Conservation Assoc
•Companies that import agricultural &
of Zambia
mining machinery & Parts
•Wildlife & Environ. Conservation Society of •Transport
•Motor vehicle companies
Zambia •Energy Regulation Board
•PLUM Association* •Zambia Electrical Supply Company
•NAPSSFZ** •Food Regulation Agency
•ZCCJP*** •Forestry
•Practical Action •Mines and mineral development
Mandatory connection between stake holders
•Biofuelwatch •Commerce, Trade & Industry
•National Science & Technology Council
Connection commonly made between
•Water Development Board
stakeholders dependent on how whether
• Participatory Land Use Management •Zambia Investment Centre
proposed biofuels feedstocks production is
Association •Zambia Wildlife Authority
perceived as a threat to their interests or goals.
** National association for Peasant and
Small Scale Farmers of Zambia Connections Needed
*** Zambian Commission for Catholic
Justice and Peace. Institutions listed in order of the frequency and
CEEEZ = Centre for Energy, Environment and significance of their connections.
Engineering

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10.13 Summary of biofuels activities implications in Zambia

MARKET
FARM INDUSTRY
Potential exists at all levels
Typically subsistence farming with Still in nascent stages. Current (households, public facilities, transport
low capital investment. Land area efforts mostly focused on biodiesel and industry including power
per household ≈2ha. from jatropha. generation).

10.14 Conclusions

Zambia’s initial steps into biofuel production still seem to be controversial. This is one of the
countries that provides an example of the need for energy alternatives as it is a landlocked
country with no indigenous oil reserves. The country has had a food security crisis for a
number of years despite around 12% of the arable land being dedicated to agriculture. It
seems that the dependency of the country on food imports is due to the lack of infrastructure
and investment in the agricultural sector. The Energy Ministry considers that bioenergy could
be an excellent opportunity to significantly enhance the production potential of feedstock for
both food and biomass production.
Zambia is an agricultural country with nearly 70% of the active population dedicated to this
sector and has been looking at different crops for biofuel production such as sweet sorghum
and cassava. The biofuels Association in Zambia is a strong organization and could play an
important role in the promotion of biofuels and food production.
The opposing perspectives of different stakeholders continue to be an issue that hinders the
future development of biofuels and bioenergy in the country.

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11. MOZAMBIQUE CASE STUDY

11.1Location
Mozambique is located on coordinates 18° 15’ S, 35° 00’ E in south-east Africa and borders
the United Republic of Tanzania to the north, Malawi, Zambia, Zimbabwe, South Africa,
Swaziland, and the Indian Ocean. It has a coastline of nearly 2,750km. The country is
divided into eleven provinces (from south to north): Maputo, Maputo city, Gaza, Inhambane,
Manica, Sofala, Zambézia, Tete, Nampula, Niassa, and Cabo Delgado. It has a total area of
801,590 sq km of which 784,090 sq km is land and 17,500 sq km is water.

Figure 11.1: Map of Mozambique showing surrounding countries,

Geographical Characteristics
Mozambique occupies the eastern fringe of the great southern African escarpment. The
mountains of the interior fall to a broad plateau which descends to coastal hills and plain.
Rivers generally run west to east. The coastal beaches are fringed by lagoons coral reefs
and strings of islands. The extensive low plateau covers nearly half the land area. The
Zambezi is the largest of 25 main rivers.

Vegetation
The plateau is savannah – dry and open bushveld and wide stretches of grassland. There
are patches of forest in the western and northern highlands. Dense subtropical bush
characterizes the coastal plain. Forest covers approximately 25% of the land area, having
declined at 0.3% p.a. between in the period 1990 - 2005. Arable land comprises 5.6% and
permanent cropland 0.3% of the total land area.

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Wildlife
Mozambique has four national parks. Gorongosa, the biggest, extends to 3,770 sq km.
There are also many forest and game reserves harboring zebra, water buffalo, giraffe, lions,
elephants and rhinos, and many varieties of tropical water birds such as flamingos, cranes,
storks and pelicans.

Climate
Climate ranges from tropical to subtropical. The inland is cooler than the coast and rainfall
generally increases with altitude (which ranges from 0 meters above sea level to Monte
Binga, the highest point, which 2,436 m high. Mean annual rainfall ranges from 800 mm to
1,000 mm along the coast; 1,200 mm in the central region of the country; and between 1,000
mm and 2,000 mm in the northern region. The hottest and wettest season is October to
March. From April to September the coast has warm, mainly dry weather, tempered by se
breezes. The country is vulnerable to cyclones.

Administration
Mozambique is divided into 10 provinces: Cabo Delgado, Gaza, Inhambane, Manica,
Maputo, Nampula, Niassa, Sofala, Tete, Zambezia. Maputo is the administrative capital.

Environmental Characteristics
The most significant environmental issues are desertification, pollution of surface and
coastal waters, and persistent migration of people from the hinterland to urban and coastal
areas caused mainly by a long civil war and recurrent drought in the hinterlands.

11.2 Population Size and Characteristics


The July 2009 population estimate for Mozambique is 21,669,278 people. The population
density is estimated to be 28 people per sq km land area. The population estimates for
Mozambique explicitly take into account the effects of excess mortality due to AIDS and are
based on projections for 2009. Mozambique has very high HIV/AIDS prevalence rates. The
adult prevalence rate is 12.5% by 2007 estimates with approximately 1.5 million people living
with HIV/AIDS. In the same year, about 81,000 deaths from AIDS were reported.

Age structure (2009 estimates): 0-14 years - 44.3% (male 4,829,272/female 4,773,209);
15-64 years -52.8% (male 5,605,227/female 5,842,679); 65 years and over - 2.9% (male
257,119/female 361,772).

The population growth rate is 1.791% while the birth rate is 37.98 births per 1,000. The
death rate by 2008 estimates is 20.29 deaths per 1,000.The urban population is estimated to
be 37% of total population at 4.1% annual rate of urbanization. The Sex ratio
at birth is 1.02 male(s)/female under 15 years; 1.01 male(s)/female 15-64 years; 0.96
male(s)/female 65 years and over: 0.71 male(s)/female total population: 0.97 male(s)/female
The total Infant mortality rate is 105.8 deaths per 1,000 live births (108.57 deaths/1,000 live
births for males and 103 deaths/1,000 live births for females). The total Life expectancy at
birth is vey low, at 41.18 years (41.83 years for males and 40.53 years for females). The
Total fertility rate is 5.18 children born per woman.

11.3 Gross domestic product


Although it has considerable mineral reserves, Mozambique is a highly indebted, poverty-
stricken country. It is richly endowed with natural resources, including arable land, forest,
grasslands, inland water resources from its network of rivers including the Zambezi, marine
fisheries, minerals and hydroelectricity. As a result, the economy is diversified, and

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agriculture, transport, manufacturing, energy, fisheries, tourism and wage remittances all
make important contributions to the economy. Following the rapid growth of the industrial
sector in the past few years, the share of agriculture in national Gross Domestic Product
(GDP) has been falling, down from over 27 percent in 1998 to below 21 percent in 2008. The
sector, however, still employs about 81 percent of the total labour force and provides major
export earnings from commodities such as prawns and fish, cotton, sugar, timber and
cashew nuts. Other exports include aluminium and electricity.

The poor status is largely due to Civil war, ineffective socialist economic policies, and severe
droughts that plagued Mozambique's economy throughout the 1980s. The GDP is 9,735
million US dollars while the GDP per capita in 2009 is estimated to be $456 US dollars.
Mozambique remains dependent upon foreign assistance for much of its annual budget, and
the majority of the population remains below the poverty line (70%). Subsistence agriculture
continues to employ the vast majority of the country's work force. A substantial trade
imbalance exists. Between 1980 and 2007 Mozambique's Human Development Index (HDI)
rose by 1.34% annually from 0.280 to 0.402 today. The HDI provides a composite measure
of three dimensions of human development: living a long and healthy life (measured by life
expectancy), being educated (measured by adult literacy and gross enrolment in education)
and having a decent standard of living (measured by purchasing power parity, PPP,
income).

However, recent shifts in economic policy toward a market economy and a resolution of the
civil war have laid the foundation for an economic recovery helping the economy to grow on
average by 4.7% yearly between 1988 and 1998. In 2001, it stood at 9.2%.

10.4 Main food crops

The main food crops in Mozambique comprise cereals (maize, sorghum, millet and paddy
rice) and cassava, supplemented by bananas and cashew nuts. According to FAO, the
average yields of the main food crops are as follows:

o Maize: 0.4-1.3 tonnes/hectare


o Cassava: 4-5 tonnes/hectare
o Beans: 0.3-0.6 tonnes/hectare
o Sorghum: 0.3-0.6 tonnes/hectare
o Rice: 0.5-1.8 tonnes/hectare

About 4 million hectares of land equal to about 10% of arable land is under cultivation, out of
which 97% is cultivated by smallholder farmers. About 3.2 million smallholder farmers are
responsible for 95% of all agricultural production. Each household cultivates an average of 2
hectares. Approximately 91% of the land is tilled by small and medium scale farmers and is
used for annual crops which include maize, cassava, rice, sorghum, millet, cowpeas and
groundnuts. Maize, cassava and cowpeas were the most common food crops, cultivated by
79%, 73% and 50% of the farmers respectively. Of the maizeproduced in the country 99% is
produced by the small-scale farmers in Zambézia, Nampula, Niassa, Manica, Tete Provinces
including selected areas of Maputo and Gaza.

11.5 Main Agricultural food products imports and exports


The main agricultural products include cotton, cashew nuts, sugarcane, tea, cassava, corn,
coconuts, sisal, citrus and tropical fruits, potatoes, and sunflowers. Industrial crops include
tobacco, cotton, cashew, coconuts, tea, paprika, soybeans, sesame, sunflower and citrus.

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Mozambique is a net importer of food commodities, especially rice, wheat and, to a lesser
extent, maize22. Mozambique relies on imports for all its domestic wheat requirements.
Imports of rice account for about 75 per cent of total domestic consumption, and those of
maize (mostly from South Africa) account for about 13 per cent of total domestic
consumption.

Main agricultural exports include cotton, cashew nuts, sugarcane, tea, cassava (tapioca),
corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers.

11.6 Characteristics of livelihoods

The majority, i.e. 80%, of the population is active in agriculture. Of these, about 90% work in
the family farm sector. The family agriculture system is characterized by family labor force
and low mechanization. Agricultural inputs such as tractors, ploughs, fertilizers, pesticides
and others are low, or almost zero. The number of irrigated areas is mainly limited to bigger
farms in lowland areas (rice) and mainly directed to vegetable production in small areas. In
addition productivity per hectare is low. Hence, the potential for agricultural growth is
significant. Fertilizer use is very low, used only for cash crops and is approximately 2kg of
fertilizer per hectare of arable land. The table below shows some agricultural statistics.

Table 11.1 Mozambique’s agriculture statistics

Agricultural land - % of land area: 61.96 % of land area


Agricultural land - sq. km: 485,800 sq. km
Agricultural machinery - tractors: 5,750
Arable and permanent cropland: 4,135 thousand hectares
Arable land - % of land area: 5.55 % of land area
Arable land - hectares: 4,350,000 hectares
Cereal production: 131 thousand metric tons
Cereal yield - kg per hectare: 959.2 kg/ha
Food production index: 104 %
Labour share: 80.3%

Land may not be sold; access is free of charge, but once occupied the land can be inherited
to the occupant's direct descendants. Slash and burn techniques for preparing fields are still
the main agricultural technique used. Main production constraints are pests, seed shortages
and labour shortage, for both cash and food crops, since most of the cash crops serve as
food crops.

11.7 Policies in place

Energy Policies and Strategies


The energy Policy (1998) provides a clear statement on the need for providing energy to the
household and productive sectors, building capacity and improving management in the

22
International Institute for Sustainable Development, 2009. Agriculture: Future Scenarios for Southern Africa -
Food Production in Mozambique and Rising Global Food Prices

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sector, increasing exports and efficiency. The Energy Sector Strategy (2000) focuses on
how to implement the policy, involving the private sector and the development of more
competitive markets and the need for regulation. The strategy complements the Energy
Policy, outlining and making explicit the intentions of the government in the development of
plans of actions, programmes, projects, investments and other actions for the various energy
sub sectors and for the guidance of operators in the sector, financial institutions and
investors. However, the strategy is not fully developed and clear. The Poverty Reduction
Strategy also has energy as one of the six pillars. There is also a policy for Rural Energy
Development which aims to promote rural energy development by giving access to the poor
to intermediate (Kerosene) and modern forms of energy (Electricity).

Mozambique also has recently developed a Biofuels Policy and Strategy. The initiative was
launched on 24 March 2009, and establishes guidelines for both the public and private
sector to better participate in the biofuels industry. The purpose for adopting the measure is
to reduce the country’s dependence on imported fossil fuels. Other factors include the need
to ensure energy security, advantageous conditions for agriculture, and need to promote
sustainable economic growth.

Concerns over food security issues in relation to growing food crops for biofuels were
highlighted in parliamentary discussions on the issue, and parliament agreed to produce
biofuels without compromising food. The parliamentary session that voted to approve the
document also agreed to create a National Biofuels Council which will be responsible for
monitoring the implementation of policies targeting the sector. In an effort to promote the
development of biofuel production, Mozambique has engaged governments and businesses
in other countries, namely biofuels giant Brazil.

Mozambique has already concluded agreements on trade cooperation, investment, and


technology transfer for several years. More recently, Mozambican biofuels policies designed
to stimulate the sector have led to the approval of three export-oriented projects in the south,
north, and centre of the country. In order to stimulate domestic consumption, the government
plans to establish a mandatory 15 percent blend of biofuel to petrol and diesel within five
years.

Land Policy
A new law was passed in 1997 to ensure that Mozambicans are able to use land fairly and
securely. Under the 1997 law, land in Mozambique is still owned by the state, and cannot be
bought or sold. However, the law recognizes the rights of people or communities to use the
land and sell assets on it. Long-term use rights can be obtained through occupation by
communities, through occupation in good faith for at least 10 years or through a land
allocation procedure, where the state can give user right title for various kinds of investment
projects.

11.8 Biofuels industry programmes development

The development of large-scale renewable energy projects in Mozambique is still in its


infancy. Mozambique’s huge untapped potential of renewable energy technologies is well-
suited for both urban and rural energy development. The first ethanol plant in Mozambique,
inaugurated in October 2007, received some US$510 million in support from the UK. The
plant currently produces 120 million litres of ethanol per year. The National Biofuels Strategy
has outlined an Action Plan that envisions commercialization of biofuels in the period 2009 –
2015 which will involve feedstock production, establishing processing industries and
distribution networks.

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Data from the Investment Promotion Centre (CPI) and Ministry of Energy indicate that there
are at least 5 serious players who had been investigating the potential of biofuel in
Mozambique. The Ministry of Agriculture also reports that they are many enquiries from
around companies interested in acquiring land to establish biofuel plantations. A number of
companies are already involved in biofuels production or processing in Mozambique,
including:
o Sun Biofuels
o Green Fuels
o Ginwala
o Chemc
o Geralco/Boror
o Alif Quemica
o Climate Change Corporation
o Petromoc
o Groupo Madal
o Nhacoongo
o Somoil
o Olimax

11.9 Crops used for biofuels

Potential feedstocks include sugarcane, Sweet sorghum, cassava, maize (for ethanol),
Jatropha curcas, coconut, sunflower, soy, groundnuts (for biodiesel). However based on
sustainability of feedstock as well as evaluating their potential for income generation, cost of
production, socioeconomic and environmental impacts the chosen crops for biofuel
production in Mozambique are the following: sugarcane and sweet sorghum for ethanol,
Jatropha curcas and coconut for biodiesel.

11.10 Expected end use of biofuels

Final use of biofuels in Mozambique will be for cars and industry, agricultural and home
electrical equipment. Ethanol will be used as direct blend with fossil fuels. Ethanol can also
be used to produce gel fuel as a domestic energy source to reduce over - dependence on
Charcoal and wood. Biodiesel can be used in generators. Straight vegetable oil can be used
in Stationary diesel equipments. For the use of cars, a blending of up to 20% biofuels can be
implemented with out modifications to the engines.

11.11 Mapping of policies and institutions


Ministries/Secretariats Involved in the Bioenergy Planning/Applications
The major government institution overseeing the energy sector in Mozambique is the
Ministry of Energy. Three directorates (Electricity Directorate, Fuels Directorate and
Renewable Energy Directorate) within the ministry formulate policy, regulation and are
responsible for energy planning and management.

The Ministry of Energy (MoE) and the renewable energy and fuels directorate have the
responsibility for formulating biofuel policy in Mozambique. Any investment in the sector
would need to be cleared by the ministries. For instance a project to develop industrial
capacity would and/or import / export oil need be reviewed by the Ministry of Trade and
Industry. The Environment Ministry would need to be satisfied with the environmental impact
of the project.

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NGOs Involved
Technoserve: This is a US-funded Private Voluntary Organisation (PVO), and one of the
few organisations active in developing extension services to small holders in the coconut
sector. They are active in the coconut sector. GreenFuels are currently working with
Technoserve, and the Ministry of Agriculture – small producers of biodiesel can obtain a
license through a government approved Technoserve process.

Other Key Stakeholders Identified


Other key stakeholders include Petromoc, the largest fuel distributor and owner of storage
facilities at Maputo Port and the Investment Promotion Centre (CPI) who aim to offer a ‘one-
stop shop’ for investors.

11.12 Links in Biofuels Development in Mozambique

Ministry of Ministry of Trade Ministry of


Planning & Industry Environment

Government Agencies
Ministry of Energy
Finance Ministry of
Electricity Directorate
Ministry Agriculture
Fuel Directorate

Renewable Energy Directorate Parliament


Investment National Biofuel Commission
Promotion
Centre (CPI) Petromoc

Private Sector Biofuel Project/Programme Development


Investors Partners
(Production, (Donor
Processing) Community)

Key:
Local Technoserve Direct links (--------)
Community Indirect links (-.-.-.-.)
Needed links (..........)
(Farmers)
NGOs/
CBOs

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11.13 Summary Mozambique

FARM INDUSTRY MARKET


97% of cultivated land tilled by Large-scale projects still in Mainly transport and industry,
smallholder farmers. Each household nascent stage, comprising agricultural and home
cultivates an average of 2 hectares. bioethanol & biodiesel electrical equipment.

•Family agriculture system •Unavailability of feedstock and • Market for biofuels is still in its
characterized by family labor force infrastructure infancy
and low mechanization
•Fertilizer use is very low, used only
for cash crops
•Agricultural inputs such as tractors,
Issues ploughs, fertilizers, pesticides and
others are low, or almost zero
•Production constrained by pests,
seed shortages and labor shortage
•Concerns over food security issues
in relation to growing food crops for
biofuels
• Poverty Reduction Strategy has •National Biofuels Strategy has •National Biofuels Strategy Action
energy as one of the six pillars. outlined an Action Plan that envisions Plan also envisions establishment of
• Biofuels Policy and Strategy commercialization of biofuels in the distribution networks.
Policies
establishes guidelines for the public period 2009 – 2015 which will involve
and private sector to better feedstock production and establishing
participate in the biofuels industry. processing industries
•Mozambique has engaged •At least 5 serious players have been
governments and businesses in investigating the potential of biofuel in
other countries with successful Mozambique.
Emerging
biofuel programmes, e.g. Brazil.
Patterns/
•Agreements on trade cooperation,
relationships
investment, and technology transfer
concluded between Mozambique
and European countries.
•Opportunities to provide farm jobs •Growth in agro-industrialization •Ethanol can be used to produce gel
•Environmental benefits of using • fuel as a domestic energy source to
biofuels replace firewood and charcoal
Impact/ future
•Expanded income through adoption •Country’s dependence on imported
implications
of new cash crops. fossil fuels will reduce.
•Irrigated feedstock production to
create more demand for water

11.14 Conclusions

Mozambique has been the recipient of numerous investors in the last years for bioenergy
crops production. The National Government has followed a conscious path into the
development of their policies and the mapping of the country to better identify the areas
where this production is possible without generating negative impacts in local resources and
food production.
At farmer level the infrastructure and investment for agriculture is very limited or nearly null
affecting the yields. Mozambique is a net importer of food commodities, especially rice,
wheat and, to a lesser extent, maize. At the same time the country relies on imports for all its
domestic wheat requirements. Imports of rice account for about 75 per cent of total domestic
consumption, and those of maize (mostly from South Africa) account for about 13 per cent of
total domestic consumption. Nevertheless, there are reports about the land availability for
food and bioenergy crop production.

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Since most of the bioenergy initiatives have recently started it is difficult to assess how the
local communities are engaging with the production.

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12. GENERAL CONCLUSIONS

The production and possibilities for investment on biofuels in Africa need to consider the
differences and collection of factors at regional and local level including geographical
location, land use patterns, preferences, income distribution patterns, cultural and social
aspects. With these assumptions it is possible to consider that in Africa, there is much scope
for improving agricultural productivity. Furthermore, many countries already have policies in
place or are on the way to produce their own policies regarding biofuels production.
Nevertheless, as some of the case study countries showed, these policies are sophisticated,
although the capacity to implement and monitor them may be limited. This is an issue that
needs to be considered for the standards and certification issues and for the efforts that the
Global Bioenergy Partnership (GBEP) is trying to pursue.
Although we acknowledge that Africa is a continent with 61 territories and that the number of
case studies in this report is limited, the literature review and the regional experiences point
out to the issue that Africa has the potential to meet both its food and fuel needs from
biomass. The food vs / and fuel debate and the reality in the continent is more acute and
nuanced than in any other region, and African leaders struggle with a combination of urgent
drivers and obstacles that require unique and carefully thought through policies.

Another important issue to be considered is the need for directed investment (both internal
and external) for the development of this industry and the careful stimulation that local
markets need. This will require further studies specially for the consideration of the
diversification of products related to bioenergy crops in the local markets
Exporting some biomass and biofuels may be necessary to encourage the investment
required to expand food and fuel production but great care needs to be taken to add value
locally and protect local land and labour rights.

Biofuels can be grown on significant scales without indirect effects on food production or
natural habitats though some considerations on production, sustainability and policy should
be taken into account as follows:

• The stakeholder mapping in all the case studies showed the lack of interaction between
all of them (government, private, NGOs, farmers) despite that the bioenergy production
activities show clear cross cuttings in different areas such as Agriculture, Energy,
Industry, Transport, Social, Environment agencies and Ministries.
• The case studies reviewed in this document do not represent the total activities and
situation of the rest of the countries in the continent but are some of the most relevant
examples in different regions in the continent.
• On land currently under cultivation, in the less developed countries it can be possible to
triple yields by using improved management practices, potentially freeing up more land
for biofuel production.
• It is estimated that the area under sugar cane in the region could be doubled without
reducing food production or destroying valuable habitats. Sweet sorghum shows
promise for integration with sugar cane and extending production into drier areas.
• Jatropha is being planted in southern Africa with plans for expansion, but is relatively
unproven and has yet to reach commercial-scale oil production. Oil palm is mostly
grown in West Africa but cold-tolerant varieties have been successfully demonstrated
in southern Africa.
• If biofuel production brings investment in land, infrastructure and human resources, it
could help to unlock southern Africa’s latent potential and positively increase food
production.

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ERA-ARD, SROs, FARA Africa

• Investors and Governments in the EU should look not just at local Policies but also at
Regional Policies in Africa which create an umbrella for countries who do not have a
dedicated policy on biofuels. Enacting a legal and regulatory framework that allows for
the development of modern biomass is also necessary in African countries and EU
countries can contribute to promote this and enforce regulations where available.
• In South Africa, expansion of agriculture may be limited, but in Mozambique, only 10%
of arable land is currently under cultivation.
• It is necessary to look for subsidy policies, equitable power prices and consistent trade
and taxation policies.
• Private investors should comply with international agreements, local policies and
regulatory frameworks on trade, agriculture and sustainability issues.
• International agreements on land use and resources considerations (conservation
areas, definition of idle land, suitable land for biofuels, water) will help to strength the
sustainability considerations at local level.
• Secondary effects should be avoided strengthening the use of traditional environmental
management methodologies (EIA, SEA, SIA) with local research groups and
professional bodies.

Recommendations:

• The involvement of stakeholders should be not only for the decision-making process
but also for the enforcement and monitoring of the bioenergy activities.
• Food security involves many aspects that are not strictly related to land availability,
crop selection and production. These other aspects such as trends in national and
international markets, speculation, activities of middleman and others should also be
considered as causes and not just the development of bioenergy industry.
• It cannot be denied that negative impacts have occurred in some areas (not whole
countries), such as displacement, and these should not only be avoided but legally
penalised.
• National Governments should also look at case by case for the decision making of
investments not only for bioenergy crops but also for other agricultural and industrial
developments, specially where these activities are increasing.
• Adequate investment for these activities should favour not just the National Economies
but also the small producers.
• Further research is still needed including the local capacities (Universities and
Research Institutes) in order to assess the possibilities of the extension of local
markets and the forms of investment to contribute to the expansion and further
development of the agriculture, industry and economy sectors in Africa with a positive
contribution to the population and the environment.

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14. ANNEXES

Annex 1.
Regional Programmes related to biofuels .

Region Regional Policy Year Objectives Strategies on Strategies on Framework


Document Renewable Energy Biofuels
Implementation
ECOWA White Paper for 2006 Increase access to Actions: Establish a regional Managing the energy
S(West a Regional domestic cooking 1. Build capacities of Biofuels Centre of and regional
Africa) Policy fuels for rural and public and private excellence to serve as development
in West Africa peri urban actors. a research hub for the information system
populations of the 2. Help mobilise soft region • Helping Member
region. loans and funds from States set up systems
Increase access to the private sector for for assessing the
production energy projects to extend impact of policies and
services in villages, energy services to programmes.
particularly motive rural & peri urban • Holding regional
power for areas. workshops, training
productivity and 3. Sharing promoting sessions and
improved and disseminating discussions on
community sub-regional sustainable energy
services. experiences relating policies that will bring
Increase access to to the supply of energy supplies to the
electricity services energy services. poor.
4. Promotion of local • Helping Member
production of energy States to raise funds
goods and services. through project
development and
donor conferences.
• Establish and
manage an innovation
fund to encourage
innovation.
SADC SADC Protocol It has six objectives None besides None N/A
on Energy amongst which are: mention of
To co-operate in renewable energy in
the development the
and utilisation of major objectives.
energy in the
Region in the
following sub-
sectors: coal, new
and renewable
energy sources,
energy efficiency
and conservation,
and other cross-
cutting themes of
interest to member
states.
To co-operate in
the research,
development,
adaptation,
dissemination and
transfer of low-cost
energy
technologies.
East East African Oct No specific regional
African Community 2006 energy policy

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ERA-ARD, SROs, FARA Africa

Commun Treaty objectives; energy


ity priorities such as:
the EAC partner
states shall in
particular promote
within the
Community all
measures to supply
affordable energy
to their people
taking cognizance
of the protection of
the environment as
provided for by this
Treaty
The Addis Ababa August Providing None The Declaration None
African Declaration on 2007 recommendations makes 12
Union Sustainable for the Biofuels recommendations for
Biofuels development in biofuels development
Development in Africa in view of the which include:
Africa rising and volatile developing and
oil prices, and the enabling policy and
need to stimulate regulatory frameworks
growth and rural for the biofuels
development, development as a
amongst others. matter of priority
taking into account
the following aspects:
link to overall
sustainable
development policies,
promote equality
including gender
equality, ensure
participation of all
stakeholders, promote
local consumption,
and enhance energy
security.
COMES e-COMESA July Regional Africa has a If Africa is to take AfDB to assist Africa
A newsletter 2007 integration through comparative advantage of the in taking advantage of
Region trade and advantage in growing increase in demand the Biofuels industry
investments. crops that can easily for biofuels: (i) it will by establishing strong
be transformed into need to signif. research capacities
biofuels and the increase the land and working with
technology used is under sugar cane; Regional
relatively simple. assessment needed Organizations such as
Africa is to use this on land availability, COMESA
opportunity to lift its both in terms of
populations out of switching to sugar
poverty. cane and new land.
(ii) assess what
investments will need
to be made in sugar
cane processing mills
and work with the
private sector to
ensure these
investments are
realised.
Biomass SADC countries, 2004 Support social and • To improve access
Energy specially environmentally to improved wood
Conserv Lesotho, Malawi, sustainable fuels stoves for
ation Mozambique, production of households,
institutions and
(PROBE Namibia, South biofuels in the
productive sectors

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C) Africa, Tanzania, SADC region. • Sustainability


Zambia and criteria for
Zimbabwe biofuels
• Socio-economic
aspects of
biofuels
Build ProBEC, SADC
Secretariat and other
partner knowledge
Source: Modified from Jumbe and Msiska, 2007.

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Annex 2. Case study Ghana

The case of Ghana was included due to the biofuels activitethat the country has been
experiencing in the last five years. It does not cover all the information as the other case
studies and focuses only on the policy analysis and the stakeholder mapping.

National Ministries/Secretariats involved in the bioenergy planning/applications

Ministry of Energy

Due to increasing foreign exchange deficit and the domestic demand for diesel consumption
in transport sector, many African nations have recognised the potential positive contribution
of biofuels for its domestic diesel supply as liquid fuel also for electricity supply. However it
has recently realised that biofuels can be a highly sensitive subject in most of African
countries where agriculture is its major industry. In particular, when it comes to land planning
and rural livelihood, many governments understood that they should adopt a highly careful
approach.
Nonetheless, renewable energy is gaining more and more attention globally and it is widely
seen that the biofuels can be one of the ways of diversifying energy supply, in particular,
fuels sector, whose demand is consistently growing. It still faces several challenges such as
financial issues and technical inefficiency, they can be solved with an appropriate
stakeholder consultation and polished policy push up.
Ministry of Energy is planning to offer a series of advantages to renewable energy project
developers such as subsidies, loan and a removal of delivery barrier. Furthermore it is
addressed by the Ministry of Energy that to create a domestic market and a mandatory
target have to be prioritised for supporting the renewable energy projects.

Energy Commission (EC)

The role of the Energy Commission is to assist the Ministry of Energy in developing
legislation based on stakeholder consultation by providing below

1. Policy recommendations
2. Develop regulations
3. Develop standards in collaboration with GSB
4. Carry on a pilot farm
5. Compile and stall the database
6. Monitor operation

The Energy Commission has been actively involved in creating biofuels legislation from the
publication of Strategic National Energy Plan to the most recently established final draft for
renewable energy, that is currently under the EC’s revision and stakeholder consultation
before it is passed onto the parliament.
EC argues that the biofuels industry in Ghana is now on initial stage emerging quickly,
therefore, it needs certain form of regulations in order to prevent abuse of monopoly, or
domination of foreign capital. Energy Commission can provide those services and help the
industry to grow in a more structured and organised way, and increase the potential, which
make the EC to be most intimately interacting with biofuel project developers or investors.

Ministry of Food and Agriculture (MoFA)


MoFA primarily aims to create an environment for sustainable growth and development in
agriculture sector. Its major considerations are provision of food security, supply of raw

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materials for industry, creation of agricultural employment and an establishment of wealth


based on agricultural activity. Therefore, biofuel projects which involves a large size of land
and plantation, is certainly of MoFA’s interests.
The current position of the Ministry for biofuels project has turned rather cautious, but still
hopeful. The ministry has made several points clear. Specifically :
• Appropriate local community consultation and comprehensible land planning in order
not to undermine, rural livelihood for traditional cash crop such as shea nut tree,
cashu and dawadawa,
• a partial loss of productive land social incentives(travel cost due to the size of the
farm),
• clear written agreement on social responsibility and improvement in rural
employment, and
• sufficient information on and required training
To summarise, the MoFA is keen on making progress with biofuels project, ensuring
marginal land utilisation and an increase in women employment. The Ministry intends to
involve more local people for these projects, also raise the ownership and awareness
amongst them. That would be the way which benefit both the investors and the local people,
and integrate them so that they can increase the labour efficiency and motivation.

Council of Scientific and Industrial Research (CSIR)


The CSIR is a research institute under the Government. As biofuel projects have already
grown quite fast, the CSIR would like to set off the scientific and technical research
collaboration with other policy researchers in order to verify the suitability of biofuel
production from Jatropha and other biofuel crops on Ghanaian soil, mostly for yield, high oil
contents and water draught figure of the crops. Furthermore, the CSIR would like to propose
the certification scheme for the biofuel that will enable the domestically produced biofuel to
meet the foreign markets quality requirements. Currently there is no ongoing collaborations
reported. The role of collaboration between the industry and the research institute for further
R&D activities is likely to be significant for future development.

Ghana Standard Boards (GSB)


GSB is a national statutory body responsible for the development promulgation of Ghana
standards, as a member of the African Regional Organisation for Standardisation(ARSO),
and the International Organisation for Standardisation. The current biofuels certification has
primarily referred to ISO. The standards set for biodiesel specify the quality requirements
and test methods for marketed and delivered biodiesel to be used either as automotive fuel
for diesel engines at 100 per cent concentration, or biodiesel (B100) Grades S15 and S100
to be used as a blend component with middle distillate fuels.

The company has to submit the sample of seeds and oil, get them tested, inspected. As the
standards are only to verify the technical and scientific features, GSB conducts various lab
experiments with the supplied oil. It also involves the visit to the plant and refinery facility.
When the fuel passes all quality tests, certification is issued to the biofuel supplier to be able
to be a legitimate supplier within the country. Furthermore, GSB is likely to be responsible for
introducing Sustainability criteria if it happens.

Ghana Investment Promotion Centre (GIPC)


The GIPA is responsible for investments in all sectors of the economy. Any foreign
companies, wanting to initiate a business in Ghana, have to be registered at the GIPC. Once
registration is completed, the GIPC provides a series of services such as tax incentives in a
form of corporate tax rebates or tax exemptions if applicable. GIPC also assists foreign
companies to ensure the transfer of dividends and bilateral investment treaties.
Agro-processing from crops such as Cotton, Sorghum, Soya beans, Oil Palms, have already
been identified as key investment opportunities. Even though biofuels itself has not been

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strongly promoted by GIPC, the interests from foreign investment are increasingly growing
for the recent years.

Environmental Protection Agency (EPA)


EPA is a public body for protecting and improving the environment in Ghana. It seeks to
ensure environmentally sound and efficient use of both renewable and non-renewable
resources in the process of national development. EPA is also responsible for implementing
environmental policy and planning consistent with the country’s desire for effective, long-
term maintenance of environmental quality. EPA has an authority at the competent regional
level.
As discussed earlier, EPA plays a very important role in developing biofuel projects, as any
biofuel project developer with farms above 10 hectares is mandated to submit EIA in prior to
the commencement of development to obtain certification from EPA. EMP (Envioronmental
Management Plan), which can actually bring in the practical mitigation actions, should also
be included in EIA. EPA also expects a periodic report by a project developer about any
operations and activities concerning environmental sustainability and local livelihood. The
whole procedure should be documentised for the further monitoring, and the project should
be willingfully in compliance with the any legal requirements.
The EPA believes that the EIA should not just remain as a requirement for a permit, but that
it should go beyond paper works. EPA can be the most important agency for success of the
project.

Forest Commission (FC)


Timber is one of the major export products for many African countries. The FC is competent
for managing and developing forest in Ghana, also utilising and regulating the forest
resources.
The FC recently has recently revealed a large potential for carbon credits opportunities in
association with this reforestation programme. Currently, the FC only promotes forest trees
such as cassia, senna simea; that is because these trees can be utilised by the local
community for the cooking also timber sale, whilst they also can be exported to the
international market at high price. Biofuels tress such as Jatropha, which is labelled as an
agricultural tree, therefore, cannot be planted for reforestation programme and carbon
credits in Ghana. However, recent research has been unveiling that Jatropha can grow up to
5 metre, also highly dry climate resistant. FC would be keen to conduct experiment and do
more research to find out if Jatropha curcas L. can be as effective as other forest trees for
carbon sinks.

Land Commission (LC)


The procedure of obtaining the land ownership in developing countries requires a more
systematic approach as the buyer has to contend with both the traditional rules governed by
the chief and the modern government institutions.
It may vary depending on the regions. Generally speaking, however, chiefs have the legal
authority to place commercial value, and to plan change in the terms and conditions of
contract for the land. Once the deal is closed with the chief and the fee is paid, the land
should be registered at the Land Commission. The buyers are given 99-year leases in
conformity with the constitution of Ghana.

Regional and Local authorities involved in bio-energy plans, programmes, projects


Local farmers (out-growers)
Farmers and local communities appear to be very enthusiastic about the unprecedented
increasing attention paid to them and the potential of new income source. Yet, at the same
time, farmers and project developers claim that the promised benefits such as local

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employment, improving infrastructure and electricity generator installation have not been
fully addressed yet. Several reasons have been identified here.

For instance, the plantation management and generator installed tend to be a very slow
process, as it is highly capital intensive. Quite often, local farmers are unable to deal with the
investors or project managers directly, and there are always middle-men taking charge of the
commission.

Nonetheless, most of the local communities agreed that biofuel projects are highly welcome
in rural area for encouraging the economic activities of rural area, even as a secondary
income source. Farmers are keen to utilise marginal land for large scale plantation, as it
provides them with stable employment and necessary farm equipments. At the same time
they still have their small household scale farm for maize or peanuts, which is manageable in
their spare time or at the weekend.

It can be concluded that a systematic short/long term plan with a comprehensible


sustainable land management. Also it is crucial to build up a cordial relationship with the
community

Women Group
Women group in the local area can play a significant role with some educational and
technical supports from NGOs or international organisations. As they have a strong bondage
for years, the group is willing to collaborate and enjoy the benefits collectively. For instance
seeds could be planted and harvested individually, and the milling machinery is used
collectively. The oil is either used in the community for soap making, or sold at the market.
The oil cake was utilised fertiliser and insecticides.
The some portion of benefits could be used for communal purposes such as funeral and
supporting school fee for a poor household.

Chief of the community

International organisations and NGOs involved

UNDP
As the UN supports systematic bioenergy development and renewable energy promotion in
developing countries, the UNDP has recently created Energy, Environment and Sustainable
Rural Livelihood division, that is designed to be providing necessary assistance with the EC
and the MoE of the national government.

It aims to play an important role as a bridge between the government and the local
community and the investors, facilitating the opinions of each stakeholders, and harmonise
them, so that eventually to ensure that farmers work individually but also be engaged in the
project communally, enjoy benefits collectively.

GEF(Global Environmental Funds)


GEF is sub organisation of UNDP. GEF, in its principles, is created to support a project
conducted by NGOs, fallen under 4 themes; biodiversity, climate change, sustainable land
management, organic products. GEF has a timeframe for each project and only provides
initial investment such as funds, training, expertise to help the project settle in and the
community to manage it by itself. After that, usually in the first 2 -3 years, GEF projects
network can provide further technical assistance or intervened when necessary. The
provided funds are not paid back, all given as a form of grants. In biofuel projects contexts,
the GEF’s operations are mainly in association with NGOs’ rural sustainability project and
the local women group for providing technical trainings with the farmers and scaling up the
out growers scheme.

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Foreign government funded project


Ohayo project funded by Japanese government (ongoing project in Ghana)

Energy Foundation
EU funded Jatropha project development (ongoing project in Ghana)

KITE
EU funded research on biofuel via phone interview (ongoing project in Ghana)

Other stakeholders identified

Petroleum Industry (Domestic petroleum distributor)


Whilst to establish the legal justice for biofuels projects and to construct a domestic oil
infrastructure, such as refinery and bulk storage facilities are discussed as a national
strategy, the supply and distribution of the crude oil products such as diesel, gasoline and
aviation fuel are left for private petroleum industry’s realm for business.

Despite a certain challenges such as a lack of infrastructure and a low awareness for
bioenergy, the petroleum industry perceives that biofuels blending is strategically required to
strengthen energy security. Therefore, the petroleum industry would be keen to engage in
the development of the bioenergy projects and construction for biodiesel storage facility in
Ghana, also to provide a financial back up to certain extent as a form of investment.

Local vegetable oil milling plants


Particular agricultural projects such as Palm oil involves development of local vegetable oil
milling plants, as vegetable oil and the press cake are quite attractive market products in
many developing countries. Due to a lack of technical advance and high costs for chemicals
requirement, traditional mechanical expelling, which presents 27-30% oil extraction rate, is
widely deployed in Africa, rather than solvent method. It is a small industry but can be fully
utilised at local level, returning the profits straight back to the community.

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Mapping of stakeholders and institutions

Executive body Legislative body

FC
CSIR EC MoE
GSB

LC
GIPC
MoFA
EPA

Energy Women
Out growers
Foundation group

Local farmers
Local
milling
GEF plants
Domestic petroleum
products distributor

NGOs Industry

• MoE : Ministry of Energy


• MoFA : Ministry of Food and Agriculture
• GSB : Ghana Standards Board
• EC : Energy Commission
• FC : Forest Commission
• LC : Land Commission
• GIPC : Ghana Investment Promotion Centre
• CSIR : Council for Scientific and Industrial Research
• EPA : Environmental Protection Agency
• UNDP : United National Development Programme
• GEF : Global Environmental Funds

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